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 Orion Energy Systems, Inc. (NASDAQ:OESX) stands against the other cheap stocks 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 person wearing a hardhat and safety glasses in a factory installing a LED high bay fixture.
Orion Energy Systems, Inc. (NASDAQ:OESX)
Average price per share: $0.82
Market capitalization: $27.75 million
Orion Energy Systems, Inc. (NASDAQ:OESX) is a provider of energy-efficient LED lighting and controls, electric vehicle (EV) charging station solutions, and maintenance services. The company is focused on turnkey design-through-installation solutions for large national customers and on supporting customers to achieve their environmental goals through safe and sustainable solutions that reduce businesses’ carbon footprint.
In February, three insiders bought a total of around $28,816 worth of Orion Energy shares at an average price of $0.82 per share. The stock currently trading close to that amount – $0.84 per share. However, over the last five years, its shares declined 83.96%.
On February 19, the company announced it had started on-site LED lighting installation for a federal government agency. To date, project purchase orders amount to $3 million, but there’s potential for expansion. The project is expected to be finalized in the first half of Orion Energy Systems, Inc. (NASDAQ:OESX)’s fiscal year 2026.
For its fiscal 2025 third quarter, the company disclosed revenue of $19.6 million, which compares to $26.0 million in the third quarter of 2024. Net loss for the period amounted to $1.5 million, which compares to $2.3 million in the same period of last year.
Two Wall Street analysts have an average “Moderate Buy” rating on Orion Energy stock. The analysts have set a price forecast of $3.00, which represents a 256.29% increase from the previous price, reveals TipRanks.
Overall, OESX ranks 4th on our list of the cheapest stocks insiders are buying recently. While we acknowledge the potential of OESX 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 OESX 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.
