Below we present the list of 5 Most Volatile Stocks Under $5 For Day Trading. For our methodology and a more comprehensive list of volatile stocks, please see the 10 Most Volatile Stocks Under $5 For Day Trading.
5. Alto Ingredients, Inc. (NASDAQ:ALTO)
Number of Hedge Fund Shareholders: 18
5-Year Monthly Beta: 2.46
Hedge fund ownership of Alto Ingredients, Inc. (NASDAQ:ALTO) shot up by 64% during Q3, as several funds added the stock to their portfolios. Jay Petschek and Steven Major’s Corsair Capital Management and Paul Marshall and Ian Wace’s Marshall Wace LLP were two of the funds buying ALTO shares during Q3.
Alto Ingredients, Inc. (NASDAQ:ALTO) shares have crumbled to a two-year low this year, falling by 39%. The specialty alcohol producer’s sales are on the rise again after a rough 2020, but its profit is lagging behind due to logistical inefficiencies and low margins. Alto lost $28 million during the third quarter, nearly $25 million more than it lost in Q3 of 2021.
Alto Ingredients, Inc. (NASDAQ:ALTO) is addressing some of its logistical issues by taking on a $125 million loan to upgrade its plants, making them more efficient, increasing redundancy, and boosting capacity. The company’s margins have also been affected by skyrocketing corn prices, which have weighed on the profitability of its ethanol production. Alto paid an average of $8.35 per bushel of corn in Q3, up from less than $3 in 2020.
4. TETRA Technologies, Inc. (NYSE:TTI)
Number of Hedge Fund Shareholders: 18
5-Year Monthly Beta: 2.66
The number of hedge funds with long positions in TETRA Technologies, Inc. (NYSE:TTI) dipped slightly during Q3 but has tripled since the first quarter of 2020. Jim Roumell’s Roumell Asset Management has the most bullish stake in TTI among the funds tracked by Insider Monkey’s database, owning 988,420 shares and having 7.68% exposure to the stock in its 13F portfolio.
Unlike most of the stocks on this list, TETRA Technologies, Inc. (NYSE:TTI) shares are both volatile and trending upwards this year, gaining 14% in 2022. TTI shares sank to as little as $0.25 during the early days of the pandemic selloff, but now trade hands for $3.48. The stock has a decent daily trading volume of about 1.24 million shares.
TETRA Technologies, Inc. (NYSE:TTI), which provides various services for upstream energy companies, has enjoyed a resurgence in its top and bottom line results this year after a couple of lean years in 2020 and 2021. Trailing twelve month sales are up by about 40% compared to 2021 levels, while gross profit has nearly doubled. The company’s Water & Flowback Services segment has been one of its strongest performers, gaining market share and growing sales by 15% quarter-over-quarter in Q3.
3. Pitney Bowes Inc. (NYSE:PBI)
Number of Hedge Fund Shareholders: 22
5-Year Monthly Beta: 2.33
As it did with several other stocks, hedge fund ownership of Pitney Bowes Inc. (NYSE:PBI) sank during the first half of 2020 as money managers scrambled to recalibrate their portfolios in the face of the pandemic. Hedge funds have bought back into the stock since then and held onto their positions even as PBI shares pushed towards all-time lows.
Pitney Bowes Inc. (NYSE:PBI) shares are some of the most actively traded on this list, changing hands about 1.78 million times per day. The parcel delivery and logistics company’s sales and earnings fell year-over-year during Q3, sliding to $831 million and $0.00 per share on an adjusted basis, down from $875 million and $0.05 per share respectively.
Pitney Bowes Inc. (NYSE:PBI) has been targeted by activist investor Hestia Capital recently, which could ignite more volatility in the stock. The fund, which owns a 6.9% stake in PBI, has reportedly engaged with Pitney Bowes’ management on issues ranging from its capital allocation and e-commerce strategies, to the composition of its board. The fund believes PBI shares are undervalued and represented an attractive investment opportunity.
2. Ferroglobe PLC (NASDAQ:GSM)
Number of Hedge Fund Shareholders: 24
5-Year Monthly Beta: 2.15
Hedge funds’ ownership of Ferroglobe PLC (NASDAQ:GSM) more than tripled between Q3 2020 and Q4 2021, and has remained relatively stable since. David Rosen’s Rubric Capital Management owns the largest GSM stake among the funds tracked by Insider Monkey’s database, holding nearly 10.5 million shares at the end of September.
Ferroglobe PLC (NASDAQ:GSM) shares are down by 37% this year and feature solid daily trading activity of about 2.1 million shares per day, which makes them suitable for day traders. The stock’s December 16 call options also have quite a bit of implied volatility, which suggests at least some investors are expecting noteworthy price action on GSM shares in the coming days.
Strong demand for silicon prompted Ferroglobe PLC (NASDAQ:GSM) to restart its 55,000-ton silicon plant in South Africa, and has helped offset some of the weakness in the aluminum side of its business. The company’s Q3 revenue came in at $593 million, while it earned $0.52 per share. Both of those figures were well off the average estimates of two analysts who cover the stock.
1. Braemar Hotels & Resorts Inc. (NYSE:BHR)
Number of Hedge Fund Shareholders: 26
5-Year Monthly Beta: 2.33
Topping the list of most volatile stocks for less than $5 is Braemar Hotels & Resorts Inc. (NYSE:BHR), which hedge funds have gradually built up their stakes in over the past two years. Brian J. Higgins’ King Street Capital, which first took a stake in the company during Q2 of 2021, owns 1.75 million BHR shares as of September 30, giving the fund 1.44% 13F exposure to the stock.
Braemar Hotels & Resorts Inc. (NYSE:BHR) share shares have sank to a two-year low in recent days, falling by 34% this year. The REIT, which primarily invests in luxury hotels and resorts, grew revenue by 39% year-over-year in Q3 to $161 million, while its funds from operations came in at $0.16 per share. Both figures slightly missed estimates.
Braemar Hotels & Resorts Inc. (NYSE:BHR) had a preliminary occupancy rate of about 64% during November, down from 73% in October. RevPAR grew by 5% year-over-year during November, hitting $253 and by 25% year-over-year in October to $280. Both those figures represented all-time monthly highs for the company. Braemar is expected to grow revenue at about a 6.9% annual rate over the next three years, which is pretty much right in line with the industry’s expected growth rate.
For more of the latest stock picks worth considering for your portfolio, check out Marc Cuban Stock Portfolio and Best AI Penny Stocks Under $1.
Disclosure: None.
