Stock float is the number of shares of a particular stock available to public trading after taking into consideration stock held by major shareholders, employees, and other insiders. Therefore, low float stocks are usually those that have a limited number of tradable shares. This makes them interesting potential opportunities to some investors, particularly low float NYSE stocks, because they have the advantage of a low float and prestigious exchange.
A stock with a low float is more volatile compared to large float stocks, and they can easily make significant upside moves if there is a positive trigger. Because limited shares are available for trading, it can be challenging to get a seller or buyer, which leads to lower trading volume and higher spreads. When there is a trigger in these stocks, buyers rush to buy, and if there is high short interest, a significant supply and demand imbalance can be a catalyst in pushing the price higher.
Here are 4 low float NYSE stocks investors should keep an eye on:
4 Low Float NYSE Stocks on the Radar: Independence Holding Co. (NYSE:IHC)
Independence Holdings has 14.85 million shares outstanding and a stock float of 4.91 million shares. In the last three weeks, the stock has gained around 25% but is still 35% down from February highs of $43.60. The company focuses on underwriting, administering, and distributing individual and group specialty benefit products, which include supplemental health, disability pet, and group life insurance.
Recently, the company reported its Q4 2019 earnings in which it posted a $9.3 million loss. The company had a loss of $0.63 per share on revenue of $90 million in the quarter. For the full year, the company reported a profit of $12.4 million or $0.83 per share on revenue of $374.4 million.
Right now, IHC stock is up by about 3%.
4 Low Float NYSE Stocks on the Radar: Natural Grocers By Vitamin Cottage Inc. (NYSE:NGVC)
Natural Grocers has 22.49 million outstanding shares and a share float of 8.7 million. The company’s stock has surged 65% since mid-March, but it is still 20% down since the beginning of the year. The company is a growing specialty retailer that focuses on natural and organic groceries, dietary supplements, and body care products. The retailer is popular for its free science-based nutrition education programs, affordable prices, and a flexible store format.
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The company announced additional benefits to employees this week following the coronavirus outbreak. The benefits include additional paid overtime, raises, and bonuses for the good4u Crew. Natural Grocers is offering its employees across all locations disposable face masks and gloves so that they themselves do not have to incur extra costs to protect against COVID-19. The company raised compensation of employees working in bulk manufacturing and stores by $2 per hour, with $1 an hour effective up to May and the other $1 permanent.
NGVC stock is trading at $9.01, surged by 1%.
4 Low Float NYSE Stocks on the Radar: NL Industries Inc. (NYSE:NL)
NL Industries has 48.76 million outstanding shares and a stock float of 8.29 million. The company, which was formally known as National Lead Company, deals in lead smelting and is based in Houston, Texas. It was one of the first stocks to list on Dow Jones Industrial Average on May 26, 1896.
Recently, the company reported Q4 earnings of around $6.3 million, with net income being $0.13 per share. Its revenue for Q4 2019 was $29.6 million. For the full year, the components and chemical company posted a net income of $25.8 million or $0.53 per share, posting a profit for the year. Revenue in 2019 was around $124.2 million.
NL stock has soared almost 7% this morning to $2.89.
4 Low Float NYSE Stocks on the Radar: BRT Apartments Corp (NYSE:BRT)
BRT Apartments is a real estate investment trust that owns and runs multi-family properties either through joint ventures or direct ownership. The company has 16.2 million total shares outstanding and a stock float of 9.4 million.
Recently, its Board declared a quarterly dividend of $0.12 on its common stock. The dividends were paid on April 7, 2020, to shareholders who were holding BRT shares as of March 24, 2020.
BRT stock has gained almost 5% on Thursday.
Bottom Line
Low float stocks are very volatile and risky investments, but for risk-hungry investors, they can present opportunities.
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