We recently published a list of 10 Micro-Cap Stocks Insiders Were Buying In Q1 2025. In this article, we are going to take a look at where he Herzfeld Caribbean Basin Fund Inc. (NASDAQ:CUBA) stands against other micro-cap stocks insiders were buying in Q1 2025.
The White House announced Tuesday that Trump’s tariffs would take effect immediately after being unveiled on Wednesday. In anticipation of these “reciprocal tariffs,” which will apply to all countries, the stock market reacted. By Tuesday morning, the broader market index and Nasdaq Composite dropped by about 0.2%, while blue-chip companies lost 0.06%.
Amid ongoing market uncertainty, insider trading often comes under the spotlight. Executive stock purchases can signal optimism, but sales may reflect personal financial decisions or a need to diversify investments. To maintain transparency, executives typically follow pre-arranged strategies, like 10b5-1 plans. While insider trading can offer valuable information, it’s important to evaluate it in the broader context of the company’s financial stability and current market trends.
Our Methodology
Today, we’re focusing on stocks with micro market capitalizations that have seen significant insider buying in the first quarter of the year. Using Insider Monkey’s insider trading screener, we identified companies with market caps under $250 million where at least three insiders purchased shares in the past three months. From this list, we ranked the top 10 stocks with the highest number of insiders making purchases. Stocks that have been recently covered were excluded from our analysis.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
With each stock, we note the number of insiders who acquired shares in the first quarter and market capitalizations.
A financial advisor consulting with investors on their portfolio in a large boardroom.
The Herzfeld Caribbean Basin Fund Inc. (NASDAQ:CUBA)
Number of insiders buying: 5
Market Capitalization: $42.45 million
The Herzfeld Caribbean Basin Fund is a closed-end equity mutual fund that invests in U.S. public equities of companies likely to benefit from developments in the Caribbean Basin, including Cuba, Jamaica, and other nations in the region. The fund focuses on diversified sectors across these countries.
In a recent development, The Herzfeld Caribbean Basin Fund’s board of directors has approved a change in its investment strategy, shifting focus to a “CLO Equity Strategy” with a primary objective of total return and a secondary goal of generating high current income. The Fund will invest in equity and junior debt tranches of collateralized loan obligations (CLOs), which consist of below-investment-grade U.S. senior secured loans.
In March, five insiders acquired around $854,006 worth of The Herzfeld Caribbean Basin shares at an average price of $2.60 per share. Since the beginning of the year, the stock has risen 14.96%, trading at $2.69 per share. Over the past 12 months, the stock gained 4.67%.
Analyst coverage on The Herzfeld Caribbean Basin stock is currently limited.
Overall, CUBA ranks 6th on our list of micro-cap stocks insiders were buying in Q1 2025. While we acknowledge the potential of CUBA 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 CUBA 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
