We recently published a list of 10 Cheapest Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Heritage Distilling Holding Company, Inc. (NASDAQ:CASK) stands against the other cheap stocks that insiders are buying recently.
Why should we be interested in affordable stocks? Some investors like to look for cheaper stocks in order to diversify their portfolios, because these penny stocks often operate in different industries than larger businesses.
Some investors’ strategy is finding nascent companies with strong growth potential, which can bring high returns once the companies have grown. Even though penny stocks often carry higher risks and are more prone to market volatility, they also offer investors more room for growth.
What are some ways to assess cheap stocks that are worth investing in? While there’s no single simple or complicated rule that investors can follow to achieve secure results, some strategies can help. One strategy is to keep track of insider trading activity. Insiders or, in other words, people in high positions within companies, such as CEOs, CFOs, directors and other executives have valuable insights into the company’s strategic moves, plans, and initiatives. A CEO’s investment in a company’s stock can sometimes signal strong confidence in the company’s future.
While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
What are some of the most affordable stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the lowest average price per share.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization.
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Heritage Distilling Holding Company, Inc. (NASDAQ:CASK)
Average price per share: $1.21
Market capitalization: $6.45 million
A craft distillery, Heritage Distilling Holding Company, Inc. (NASDAQ:CASK), is one of the top 10 cheapest stocks insiders have been investing in lately. The Gig Harbor, Washington-based company is among the most awarded craft distilleries in the U.S. The company makes whiskeys, gins, vodkas, rums and ready-to-drink canned cocktails. It also operates distillery tasting rooms in Washington and Oregon.
The stock went public in November 2024.
In December, Heritage Distilling Holding Company, Inc. (NASDAQ:CASK) announced expansion into the Western Colorado market via strategic collaboration with Innermountain Distributing Co., and also into the Kentucky market in partnership with Keg 1 River City.
In January, Heritage Distilling Holding Company, Inc. (NASDAQ:CASK) became the first publicly traded distillery to accept cryptocurrency bitcoin. The company allowed bitcoin as a form of payment via its e-commerce platform as part of its broader corporate sales and treasury diversification strategy.
In February, four insiders, among which is Heritage Distilling’s CEO and Treasurer, bought roughly $81,895 worth of shares at an average price of $1.21 per share. Out of the total amount, the company’s CEO, B Justin Stiefel, acquired 10,732 shares worth around $13,025. With this purchase, Stiefel increased his holdings to 67,294 shares.
Since the beginning of the year, Heritage Distilling Holding Company, Inc. (NASDAQ:CASK)’s shares dropped 30.81%, and are now trading at $1.19 per share.
There is no analyst coverage available for this stock at the moment, probably because this is a new stock on the market. We should expect analyst reports as the company matures in the market.
Overall, CASK ranks 8th on our list of the cheapest stocks insiders are buying recently. While we acknowledge the potential of CASK 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 CASK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
