We recently published a list of 10 Stocks Insiders Are Buying This Year. In this article, we are going to take a look at where Gryphon Digital Mining, Inc. (NASDAQ:GRYP) stands against other stocks that insiders are buying this year.
Even though this is just the beginning of the year, we thought it might be interesting to see what stocks have attracted the most attention from insiders. Why? Sometimes, when executives or insiders acquire shares early in the year, it could mean that they expect strong financial results or positive company developments.
On the other hand, insiders sometimes sell shares at the beginning of the year for tax reasons. For example, they can sell shares to harvest tax loss or to balance out gains/losses from the previous year.
Both insider selling and buying can be driven by various motives, however, it’s 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.
To identify the 10 stocks insiders are buying this year we used Insider Monkey’s insider trading stock screener and looked for stocks with at least five insiders buying since the beginning of the year. With each stock, we note the number of insiders who recently bought shares.
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).
Gryphon Digital Mining Inc (NASDAQ:GRYP)
Number of Insiders Buying: 8
Fifth among stocks with increased insider trading activity this year is a bitcoin mining company, Gryphon Digital Mining, Inc. (NASDAQ:GRYP). It operates mining computers and ESG-led mining. It was founded in 2020.
On January 13, eight insiders, including CEO, and CFO purchased $264,329 worth of Gryphon shares at a price of $0.39 per share. These transactions were part of a signed non-brokered offering of the company’s total stock. The offering saw 100% participation from the management team and a majority of the board members, demonstrating strong confidence in the company’s future.
On January 31, Gryphon (NASDAQ:GRYP) announced that it has authorized the establishment of a strategic Bitcoin reserve program as part of its capital strategy. The initiative followed up on Gryphon’s recent strategic moves with the goal of strengthening the balance sheet and obtaining major assets. These recent agreements include restructuring the $18.0 million Bitcoin debt and a definite agreement for an HPC/AI asset in Alberta scalable to 4GW.
One Wall Street analyst has a “Hold” rating on this stock.
For the third quarter ended September 30, 2024, Gryphon (NASDAQ:GRYP) disclosed mining revenues of $3.7 million, compared to $5.2 million for the same quarter of 2023. Adjusted EBITDA was a loss of $2.5 million in the quarter, compared to a negative Adjusted EBITDA of $4.7 million in the same period of 2023. Net loss amounted to $5.95 million, compared to net loss of $8.09 million in the third quarter of 2023.
The stock is currently trading at $0.35 per share, having dropped 11.90% since the beginning of the year.
Overall, GRYP ranks 5th on our list of stocks that insiders are buying this year. While we acknowledge the potential of GRYP, 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 GRYP 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.
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