In this article, we will take a detailed look at 8 Best Low Float Stocks to Invest in Now.
Stocks with low public float refer to shares of a company that are available for trading by the public, but in relatively small quantities. The public float is the portion of a company’s shares that are not held by insiders, such as company executives, or major institutional shareholders who are usually long-term passive investors. When a stock has a low float, it can be more volatile because the smaller supply of shares means that even small changes in demand can significantly impact the stock price. For investors, this can present both opportunities and risks. While low float stocks may see large price movements, they can also be harder to trade, leading to higher spreads and less liquidity, which may be particularly painful when seeking to liquidate the investment. Consequently, investors need to be cautious with low float stocks and only buy them strategically with very high conviction.
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We believe that low float stocks become particularly attractive during times of heightened volatility, which usually happens amid pronounced geopolitical challenges or regime changes, when investors don’t know how to react to rapidly evolving circumstances. With the US stock market officially in correction territory and the implied volatility index more than 75% above the year-to-date lows, the current times perfectly fit our description of uncertainty. First, the markets have negatively reacted to the realization that tariffs will soon become a reality rather than a negotiation tool used by the new administration; the President further announced 50% tariffs on Canadian steel and aluminum, which caused some havoc among investors. On the positive side, some progress on the tariff-avoiding deal between the US and Canada, as well as the ongoing peace negotiations related to Ukraine in Saudi Arabia, provided some optimism and a boost for the stock market. Still, the picture remains dull for many investors who became accustomed to the high-growth 2023-2024 period, fueled by the AI megatrend.
A key piece of the puzzle to keep in mind when picking the right low float stock to invest in is the near- and mid-term outlook for the sector it operates in. It is well known that macroeconomic headwinds in the end market may mute even the most exceptional growth story, regardless of how strong the company’s moat is. We clearly see sluggish conditions in the construction sector, as new data shows a pronounced slowdown in both residential and commercial starts. With tariffs on construction materials kicking in, as well as the new administration being a headwind for immigration, we see this sector potentially remaining pressured for the near future. The consumer discretionary space could see slow growth as well in the upcoming quarters, as recent layoffs, as well as a tanking stock market, are very likely to make consumers more cautious with their spending. Finally, some niches in the industrial sector could also be pressured due to lower federal spending and the deteriorating Capex outlook reported by business surveys. The outlook on every other sector remains unchanged and could potentially nest some exceptional low float stocks to invest in right now.
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Our Methodology
To compile our list of low float stocks, we used a Finviz screener to filter for companies that have less than 10 million shares floating for purchase. We then compare the sample with our proprietary list of hedge fund ownership and include the top 8 stocks with the highest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8. Seaboard Corporation (NYSE:SEB)
Number of Hedge Fund Holders: 22
Seaboard Corporation (NYSE:SEB) is a multinational conglomerate engaged in agribusiness, food production, and transportation. Its operations include pork production and processing, commodity trading, grain milling, and marine shipping. The company owns and operates integrated supply chains, with pork products distributed globally and grain operations serving markets in the Americas, Africa, and the Caribbean. SEB also provides ocean freight services through its shipping division, supporting trade across international markets. The company operates through a mix of wholly owned subsidiaries and joint ventures, serving both commercial and industrial customers.
In 2024, net sales of Seaboard Corporation (NYSE:SEB) decreased to $9.1 billion, down from $9.6 billion in 2023, primarily due to a $422 million reduction in the CT&M segment’s sales driven by lower commodity prices. Despite this decline, operating income improved significantly, reaching $156 million in 2024 compared to a loss of $87 million in 2023. The recovery was largely fueled by a $475 million increase in the Pork segment’s operating income, which benefited from higher margins on pork products and market hogs, elevated sales prices, and reduced hog production costs, including $181 million in lower feed expenses. Conversely, the Marine segment faced a $146 million drop in operating income due to reduced voyage revenue, despite a 7% increase in cargo volumes. The Liquid Fuels segment also saw a $142 million decline in net sales, reflecting lower market prices for environmental credits and fuel, although the renewable diesel plant achieved more consistent production levels.
Meanwhile, Seaboard Corporation (NYSE:SEB) showed strength in the Power segment, with a slight increase in net sales, though operating income fell by $10 million due to higher maintenance costs. The Turkey segment, reflecting Seaboard’s investment in Butterball, experienced a $50 million decline in income from affiliates, driven by weaker pricing despite lower production costs. SEB invested significantly in 2024, with capital expenditures totaling $511 million, focusing on renewable biogas recovery projects and vessel construction. By December 31, 2024, the company demonstrated strong liquidity, holding nearly $1.2 billion in cash and short-term investments, along with $0.9 billion in total working capital. With only 0.26 million shares in the public float, SEB is one of the best low float stocks to invest in now.
7. Dillard’s, Inc. (NYSE:DDS)
Number of Hedge Fund Holders: 23
Dillard’s, Inc. (NYSE:DDS) is a retail company operating a chain of department stores across the United States. It offers a wide range of products, including apparel, cosmetics, home goods, and accessories, with a focus on premium and private-label brands. The company generates revenue through in-store and online sales, catering to a broad consumer base, and also operates a credit card segment, providing financing options for customers. DDS owns a significant portion of its retail locations, maintaining a strong real estate portfolio as part of its business strategy.
Dillard’s, Inc. (NYSE:DDS) reported net income of $214.4 million ($13.48 per share) for Q4 2024, a decrease from $250.5 million ($15.44 per share) in the same period of the prior year. Total retail sales and comparable store sales declined by 1% during the quarter, while the retail gross margin fell to 36.1% from 37.7%. For the full fiscal year, net income was $593.5 million ($36.82 per share), down from $738.8 million ($44.73 per share) in fiscal 2023, as total retail sales decreased 2% year-over-year, with a 3% drop in comparable store sales. The company’s inventory position rose by 7%, and category performance was mixed, with home and furniture and cosmetics showing strength, while men’s apparel, accessories, and shoes underperformed.
Despite these challenges, Dillard’s, Inc. (NYSE:DDS) continued its commitment to shareholder returns, repurchasing approximately 36,000 shares at an average price of $391.04 per share during the fourth quarter. As of February 1, 2025, the company operated 272 stores, including 28 clearance centers, across 30 states, totaling 46.3 million square feet of retail space. The CEO acknowledged the 1% decline in sales but emphasized efforts to control expenses amidst a slight drop in gross margin. The company remains focused on managing its operations effectively in a competitive retail environment. With only 7.90 million shares in the public float, DDS is one of the best low float stocks to invest in now.
6. Ubiquiti Inc. (NYSE:UI)
Number of Hedge Fund Holders: 23
Ubiquiti Inc. (NYSE:UI) is a technology company that designs and manufactures networking and communication products for enterprises and service providers. Its portfolio includes wireless networking equipment, routers, switches, security cameras, and access points, primarily sold under the UniFi, AmpliFi, and EdgeMax brands. UI focuses on scalable, high-performance solutions for Wi-Fi, broadband access, and enterprise IT infrastructure. The company operates through a direct-to-consumer and distributor-based sales model, serving customers worldwide. Its products are widely used in businesses, homes, and internet service provider networks.
Ubiquiti Inc. (NYSE:UI) delivered significant revenue growth in Q3 2024, with total revenues increasing by 29% to $599.9 million, compared to $465.0 million in the same quarter of the prior year. This growth was fueled by both the Enterprise Technology and Service Provider Technology platforms, with Enterprise Technology revenue rising 32% to $518.2 million and Service Provider Technology revenue increasing 11% to $81.7 million. The company’s gross profit margin improved to 41%, up from 38% in Q3 2023, driven by a favorable product mix, reduced warehouse-related expenses, and lower excess inventory charges. However, these gains were partially offset by higher shipping and tariff costs.
Ubiquiti Inc. (NYSE:UI) posted higher operating expenses, with R&D expenses increasing by 8% to $40.0 million and SG&A expenses surging 45% to $28.5 million. The rise in SG&A was largely attributed to higher bad debt expenses from a customer default and increased fees related to webstore credit card processing. Despite these cost increases, interest and other expenses fell by 37% to $11.4 million due to reduced borrowings and lower interest rates, offset slightly by higher foreign exchange losses. Additionally, the company’s effective tax rate decreased to 18.3% from 20.2% in Q3 2023, reflecting changes in the mix of income earned across tax jurisdictions. With only 4.18 million shares in the public float, UI is one of the best low float stocks to invest in now.
5. Graham Holdings Company (NYSE:GHC)
Number of Hedge Fund Holders: 27
Graham Holdings Company (NYSE:GHC) is a diversified conglomerate with operations in education, media, manufacturing, healthcare, and hospitality. It owns Kaplan, a global education services provider, as well as local television stations, print and digital media businesses, and industrial manufacturing companies. The company also has investments in healthcare services, restaurants, and automotive dealerships. GHC generates revenue across multiple industries, operating through a mix of wholly owned subsidiaries and strategic investments. Its diverse portfolio spans both consumer and business-facing markets in the US and internationally. The Virginia-based company ranked seventh on our recent list of 12 Best Education Stocks to Buy in 2025.
Graham Holdings Company (NYSE:GHC)’s primary goal is to grow cash flow on a per share basis over the long term, while maintaining a focus on returning capital to shareholders through dividends and share repurchases. The company has demonstrated significant success with its share repurchase program, spending $580 million to acquire more than 1 million shares through September 2024, resulting in approximately a 25% ownership increase for existing shareholders. Operationally, the company generated $307 million in adjusted operating cash flow through Q3, up $52 million from the prior year, driven by strong performance at Kaplan, Graham Healthcare Group, and political advertising at Graham Media Group. The company also maintains a robust balance sheet, with $1.1 billion in cash and securities offset by $765 million in debt, yielding a net position of approximately $343 million.
Across its business segments, Graham Holdings Company (NYSE:GHC) has shown notable progress. In the healthcare segment, GHC achieved exceptional growth, with adjusted operating cash flow increasing from $34 million to $54 million year-to-date, supplemented by $10 million in joint venture income. Kaplan continues to evolve successfully, focusing on service provision to higher education institutions globally, while leveraging AI and LLM models to enhance products and efficiency. The broadcast segment outperformed expectations, with political revenues driving a 28% increase in adjusted operating cash flow during the first nine months of the year. Though the manufacturing segment faced some cyclical downturns, it still provided solid returns for shareholders. Looking ahead, GHC is committed to organic growth opportunities, strategic acquisitions, and efficient capital allocation, while continuing to assess share repurchases based on intrinsic value considerations. With a share float of only 3.15 million, GHC is one of the best low float stocks to invest in now.
4. Coca-Cola Consolidated, Inc. (NASDAQ:COKE)
Number of Hedge Fund Holders: 28
Coca-Cola Consolidated, Inc. (NASDAQ:COKE) is the largest independent bottler of Coca-Cola products in the United States. The company manufactures, distributes, and markets a wide range of nonalcoholic beverages, including Coca-Cola, Diet Coke, Sprite, Fanta, and Dasani, along with partner and private-label brands. It operates production and distribution facilities across multiple states, serving retailers, restaurants, and other businesses. COKE generates revenue through direct sales and distribution agreements with The Coca-Cola Company, and plays a key role in the US beverage supply chain, focusing on bottling, logistics, and customer service.
Coca-Cola Consolidated, Inc. (NASDAQ:COKE) delivered robust financial results in 2024, with fiscal year net sales rising 3.7% to $6.9 billion and Q4 net sales up 7.1% to $1.7 billion. Gross profit for Q4 grew 8.8% to $697.9 million, accompanied by a 70-basis-point increase in gross margin to 40%. Income from operations experienced remarkable growth, surging 22.6% to $218.7 million in Q4 and climbing $85.9 million to $920.4 million for the full year. These achievements were underpinned by the strength of Sparkling brands (particularly Zero calorie offerings) strategic pricing initiatives, and increased demand in club and value retail channels for multi-serve, value-oriented packages. The company also demonstrated strong financial management, generating $876.4 million in operating cash flow for 2024, up from $810.7 million in 2023. Investments in growth were substantial, with $371 million allocated to supply chain enhancements and other initiatives, alongside shareholder-focused actions such as $626 million in stock repurchases and an increased annualized dividend of $10 per share.
Looking ahead to 2025, Coca-Cola Consolidated, Inc. (NASDAQ:COKE) anticipates slower financial growth but remains optimistic about delivering solid margins and robust cash generation. Management is encouraged by the ongoing success of Sparkling brands and is poised to enhance the performance of its Still portfolio through well-crafted commercial strategies. This forward-looking approach, combined with disciplined capital allocation, positions the company for continued strength in the beverage market. With a share float of only 5.18 million, COKE is one of the best low float stocks to invest in now.
3. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 29
The Boston Beer Company, Inc. (NYSE:SAM) is a beverage company that produces and sells craft beer, hard seltzers, ciders, and other alcoholic beverages. Its portfolio includes well-known brands such as Samuel Adams, Truly Hard Seltzer, Twisted Tea, Angry Orchard, and Dogfish Head. The company distributes its products across the United States and select international markets through a network of wholesalers and retailers. SAM also operates brewing facilities and research centers to develop new flavors and brewing techniques. The Boston-based company ranked sixth on our recent list of 10 Best Beverage Stocks to Buy According to Analysts.
The Boston Beer Company, Inc. (NYSE:SAM) achieved a 31% growth in non-GAAP EPS to $9.43 while delivering 200 basis points of gross margin expansion, reaching 44.4% in 2024. The business demonstrated strong cash generation with free cash flow of $173 million or $14.70 per share, enabling share repurchases of $239 million in 2024. For 2025, the company plans to increase advertising investments across its portfolio to improve market share trends and support the national launch of Sun Cruiser. The company expects 2025 depletions and shipments to range between a decrease of low single digits to an increase of low single digits YoY, with price increases between 1% and 2%. Gross margins are projected to be between 45% and 47% for 2025, with diluted EPS targeted between $8.00 and $10.50.
The Boston Beer Company, Inc. (NYSE:SAM) continues to execute its multiyear productivity plans across procurement savings, network optimization, and brewery performance, which are expected to support gross margin improvement to high-40s to 50% over time. Key growth initiatives include the national expansion of Sun Cruiser, which is expected to more than triple its distribution points between the end of 2024 and peak summer selling season, and continued focus on Twisted Tea, which remains the clear leader in the hard tea category with an 84% market share. The company is operating in a dynamic environment with inflation impacting consumer behavior and increased competition in the fourth category, while maintaining confidence in multiple growth opportunities as lines continue to blur between beer, wine, and liquor. With a public shares float of 8.36 million, SAM is one of the best low float stocks to invest in now.
2. U-Haul Holding Company (NYSE:UHAL)
Number of Hedge Fund Holders: 30
U-Haul Holding Company (NYSE:UHAL) is a transportation and storage company primarily engaged in rental services for moving trucks, trailers, and self-storage units. It operates through a vast network of company-owned and independent dealer locations across the US and Canada. The company also provides related services, including moving supplies, hitch installations, and fuel sales. UHAL generates revenue through equipment rentals, storage unit leasing, and ancillary services catering to both individuals and businesses. Its operations support a wide customer base, ranging from do-it-yourself movers to commercial clients.
U-Haul Holding Company (NYSE:UHAL) reported Q3 earnings of $67 million, compared to $99 million for the same quarter last year, translating to $0.35 per nonvoting share versus $0.51 in the previous year. The company experienced positive equipment rental revenue growth of 4.5% for the quarter, showing improvement from the 1.5% and 1.7% growth rates in the first and second quarters. The self-storage segment demonstrated strong performance with revenues increasing by $17 million, representing an 8% increase for the quarter, while the company added 80,000 new units and maintained a healthy same-store occupancy rate of 92.4%. The U-Box business continues to show promising growth, contributing significantly to the $9 million increase in other revenue, with both moving transactions and storage transactions expanding.
U-Haul Holding Company (NYSE:UHAL) maintains a strong financial position with cash and loan facility availability totaling $1.348 billion at the moving and storage segment as of December 2024. Management expressed optimism about increased consumer optimism and its positive impact on the self-move business, while continuing to address fleet imbalances from COVID supply chain disruptions. The company is actively managing challenges related to electric vehicle mandates and regulations, maintaining a pragmatic approach to fleet modernization while focusing on customer needs and economic viability. UHAL has a low public float of only 7.67 million shares and is thus one of the best low float stocks to invest in now.
1. NVR, Inc. (NYSE:NVR)
Number of Hedge Fund Holders: 45
NVR, Inc. (NYSE:NVR) is a homebuilding and mortgage banking company that operates in the United States. It constructs and sells single-family homes, townhomes, and condominiums under the Ryan Homes, NVHomes, and Heartland Homes brands. The company primarily serves markets in the East Coast, Midwest, and Southeast through a land-light business model, acquiring finished lots from developers rather than holding large land inventories. NVR also provides mortgage financing and settlement services through its NVR Mortgage division. Revenue is generated through home sales and financial services, catering to a broad range of homebuyers.
NVR, Inc. (NYSE:NVR) achieved notable financial and operational growth in 2024, with consolidated revenues increasing by 11% to $10.5 billion and net income rising 6% to $1.68 billion, alongside a 9% growth in diluted EPS compared to 2023. New orders grew by 4%, supported by a 2% rise in the average sales price, reflecting stronger demand during the first three quarters due to limited supply in the resale market and stabilized mortgage rates. However, demand slowed in the fourth quarter, particularly in the South East segment, as rising mortgage rates and increased home supply affected affordability. Despite a slight decline in the homebuilding gross profit margin to 23.7% and a 3% decrease in backlog units, the backlog’s dollar value grew by 1%, reaching $4.79 billion. The mortgage banking segment also performed well, with income before tax surging 17% to $154.9 million.
Looking ahead, NVR, Inc. (NYSE:NVR) expects that affordability issues, inflationary pressures, interest rate volatility and economic uncertainty may continue to weigh on future demand. The company also anticipates continued cost pressures related to building materials, labor, and land costs, which are expected to impact profit margins based on their ability to manage these costs while balancing sales pace and home prices. Despite these challenges, management believes the company is well positioned to take advantage of opportunities that may arise from future economic and homebuilding market volatility due to the strength of their balance sheet and disciplined lot acquisition strategy.
Overall NVR, Inc. (NYSE:NVR) ranks first on our list of the 8 best low float stocks to invest in now. While we acknowledge the potential of NVR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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