In this article, we discuss the 12 low float stocks with high volume. If you want to read about some more low float stocks with high volume, go directly to 5 Low Float Stocks With High Volume.
The US economy has had a turbulent year even though employment growth remains strong and many measures of economic activity register robust growth, even if more slowly than last year. Oil and food prices have been falling at the wholesale level. The major concern is inflation, and the interest rate hikes that have accompanied it. The monetary policy tightening has raised the cost of capital for companies and has slowed down earnings growth momentum throughout 2022, partly the reason the stock market has been such a challenge for investors in 2022.
However, it seems that better days are ahead. The S&P 500 racked up its second consecutive month of gains in November, as investors became ever more positive that the Federal Reserve would deliver a smaller rate hike in December. The index gained 5.4% in the last month, including a 3% rally in the final days. However, investors should proceed with caution given that the federal funds rate has gone up to 3.75%-4% so far this year, with another 0.5% rate hike expected to come in December.
Typically, analysts predict the S&P 500 climbing by about 10% in 2023, which is in line with historical averages. However, some of the analysts are more cautious, expecting that the S&P 500 will end lower at the end of 2023 than where it was at the end of 2022. Further, most Wall Street firms expect the US economy to go into recession in 2023, as a few others believe that the downward revisions mean lots of volatility for stocks in the early part of 2023. Investors should thus expect volatility in the first half of 2023, to be followed by an easier second half.
In this overall context, it might be prudent to invest in stable growth firms like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL), but at the same time, consider investments in low float, high volume stocks that might provide better short-term returns. According to a recent Bloomberg report, a recession in the US economy is effectively certain in the next 12 months. Bloomberg economists forecast a higher recession probability across all timeframes.
The 12-month estimate of a downturn by October 2023 has hit 100%. Economists predicted the likelihood of a recession within 11 months at 73%, up from 30%, and the 10-month probability has risen to 25% from 0%. Moreover, according to another research, economists predict a recession in the US beginning in early 2023 and lasting through at least the third quarter of the year. The central bank is likely to maintain a restrictive monetary policy stance throughout 2023 to bring inflation under control.
Therefore, the US economy is not going to be able to see a sustained expansion continue into 2023. The stock market is likely to struggle as a result. This means that investors should proceed with caution and allocate resources accordingly. For example, investments in firms with low float and high volumes might offer a better risk/reward ratio than investing in prominent growth names. This will also limit the amount of money allocated towards growth stocks that can be put to better use in value options.
Our Methodology
The companies that have low float and high volume were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Low Float Stocks With High Volume
12. NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO)
Number of Hedge Fund Holders: N/A
Shares Float: 6.33 million
Avg Volume for 10 days: 2.25 million
NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO) is a clinical-stage biotechnology company that develops and commercializes multimodal disease-modifying therapies for viral, neuropathic, and neurodegenerative diseases. On November 4, the share price of NeuroBo Pharmaceuticals has nosedived after the company priced a public offering to raise gross proceeds of $30 million. The company noted that The Series A Warrants and the Series B Warrants will only be exercisable upon stockholder approval.
On December 7, Ladenburg Thalmann analyst Aydin Huseynov initiated coverage of NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO) stock with a Buy rating and a $6 price target.
Unlike Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL), NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO) is one of the more volatile growth stocks to invest in according to elite investors.
11. Mobileye Global Inc. (NASDAQ:MBLY)
Number of Hedge Fund Holders: N/A
Shares Float: 51.12 million
Avg Volume for 10 days: 1.62 million
Mobileye Global Inc. (NASDAQ:MBLY) engages in the development and deployment of advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. On December 7, the company posted earnings for the third quarter of 2022, beating market estimates on earnings per share by $0.04. The revenue over the period was $450 million, up 38% compared to the revenue over the same period last year and beating analyst expectations by $2.81 million.
On December 8, Baird analyst Luke Junk maintained an Outperform rating on Mobileye Global Inc. (NASDAQ:MBLY) stock and raised the price target to $39 from $36, highlighting that guidance contemplates both elevated outgrowth in EyeQ sales and even stronger SuperVision volumes.
10. Snow Lake Resources Ltd. (NASDAQ:LITM)
Number of Hedge Fund Holders: N/A
Shares Float: 7.06 million
Avg Volume for 10 days: 220,000
Snow Lake Resources Ltd. (NASDAQ:LITM) is a natural resource exploration company that engages in the exploration and development of mineral resources in Canada. On September 23, Snow Lake Resources declared a memorandum of understanding with LG Energy Solutions, a Korean battery maker, to supply lithium hydroxide for ten years. The company said that it will collaborate with LG Energy Solutions to create one of Canada’s first lithium hydroxide processing plants in Manitoba.
9. Golden Sun Education Group Limited (NASDAQ:GSUN)
Number of Hedge Fund Holders: N/A
Shares Float: 8.74 million
Avg Volume for 10 days: 830,000
Golden Sun Education Group Limited (NASDAQ:GSUN) provides education and management services in the People’s Republic of China. The share price of the firm has fallen in recent weeks on the back of reports that the Chinese government is planning a new crackdown against tutoring services that are accused of fomenting societal inequality. The Chinese government has lashed out at the profit motive of these educational institutes and the burdensome environment for children fostered under heavy homework conditions.
8. Atour Lifestyle Holdings Limited (NASDAQ:ATAT)
Number of Hedge Fund Holders: N/A
Shares Float: 6.79 million
Avg Volume for 10 days: 958,000
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) operates a chain of hotels in China. On November 11, Atour Lifestyle Holdings shares were 17% up following a $52 million US initial public offering that was priced at the lower end of the company’s previously announced range.
On December 7, BofA analyst Ronald Leung initiated coverage of Atour Lifestyle Holdings Limited (NASDAQ:ATAT) stock with a Buy rating and $22 price target, highlighting that the company was the largest hotel operator in the upper midscale segment and the seventh largest in China, with 880 hotels as of September 22.
7. Digital Brands Group, Inc. (NASDAQ:DBGI)
Number of Hedge Fund Holders: 1
Shares Float: 1.49 million
Avg Volume for 10 days: 8.29 million
Digital Brands Group, Inc. (NASDAQ:DBGI) provides apparel under various brands on a direct-to-consumer and wholesale basis. On December 7, the company announced that its multi-brand website experienced a 436% increase in e-commerce revenue during its Black Friday/Cyber Monday promo period compared to the performance during the same period last year. Hil Davis, the CEO of the firm, said that this performance should continue to provide a meaningful source of revenues and assist in customer retention for the firm.
At the end of the third quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $43,000 in Digital Brands Group, Inc. (NASDAQ:DBGI), compared to 2 in the previous quarter worth $122,000.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Armistice Capital is a leading shareholder in Digital Brands Group, Inc. (NASDAQ:DBGI) with 722,890 shares worth more than $43,000.
6. HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM)
Number of Hedge Fund Holders: 2
Shares Float: 9.28 million
Avg Volume for 10 days: 331,000
HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) is a life sciences company that focuses on precision medicine. On October 26, HTG Molecular Diagnostics revealed that it has partnered up with Omicure, the creator of AI-based software for cancer therapeutic decision support, to use HTG’s Transcriptome Panel (HTP) for data generation.
At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $68,000 in HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM), compared to 2 in the previous quarter worth $182,000.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) with 86,402 shares worth more than $53,000.
In contrast to Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL), HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) is one of the more volatile growth stocks to invest in according to elite investors.
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Disclosure. None. 12 Low Float Stocks With High Volume is originally published on Insider Monkey.
