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 OncoCyte Corporation (NASDAQ:OCX) stands against other cheapest 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.
A biomedical laboratory with a molecular biologist wearing a lab coat studying test samples under a microscope.
OncoCyte Corporation (NASDAQ:OCX)
Average price per share: $2.03
Market capitalization: $78.93 million
OncoCyte Corporation is a precision diagnostics company focused on the development of new innovative and non-invasive blood and urine diagnostic tests for the early detection of cancer. The Irvine, California-headquartered company designs diagnostic tests using genetic and protein markets expressed in various types of cancer.
The company’s leading tests are VitaGraft, a clinical blood-based solid organ transplantation monitoring test, GraftAssure, a research use only blood-based solid organ translation monitoring test, DetermaIO, a gene expression test that assesses the tumor microenvironment to predict response to immunotherapies, and DetermaCNI is a blood-based monitoring tool for monitoring therapeutic efficacy in cancer patients.
Recently, the company announced that the Molecular Diagnostic program has confirmed the use of VitaGraft Kidney to monitor patients with newly developed donor-specific antibodies for antibody-mediated rejection. The news comes on the heels of a study highlighting VitaGraft Kidney’s capabilities.
Over the last 30 days, three insiders, including the company’s CFO, acquired a total of around $13.01 million worth of OncoCyte shares at an average price of $2.03 per share. The stock is currently trading at $2.76, having gained 15.97% since the beginning of the year. Over the last 12 months, its shares dropped 10.10%.
For the third quarter of 2024, the company disclosed net revenue of $115,000, which compares to net revenue of $429,000 in the same period of 2023. Gross profit was $50,000, down from $248,000 in the third quarter of the prior year. Net loss amounted to $13.49 million, compared to net loss of $6.49 million in the comparable quarter of 2023.
Three analysts have an average “Buy” rating on OncoCyte stock, with a 12-month price target of $4.42. This represents an increase of 60.15% from the previous price, according to data from StockAnalysis.
Overall, OCX ranks 10th on our list of cheapest stocks that insiders are buying recently. While we acknowledge the potential of OCX 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 OCX 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.
