Analysts Are Bullish On These Penny Stocks
Penny stocks aren’t usually the first thing you think of when talking about stock market analysts. Generally speaking, the average investors in the stock market today pair “analysts” with blue-chip stocks like Apple or Amazon. But the fact of the matter is, penny stocks are worth it according to many analysts.
Let’s go one step further. Are analyst ratings important to you as a trader? That’s something to decide right off the bat. Some see them as the confidence to justify adding penny stocks to watch lists. Others don’t really trust them. No matter which side you’re on, it isn’t a “bad thing” to use stock market analysts to your advantage.
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You just need to find where to put that advantage in the grand scheme of things. Should they be the only thing you look at? In my opinion, no but seeing why certain firms give certain ratings might help direct your attention to other topics about penny stocks.
In this case, here’s a list of penny stocks to buy according to Wall Street firms. At the end of the day, you decide whether or not you agree. Also, if any of these are on your radar, leave a comment below on any or all in the list.
Penny Stocks To Buy [according to analysts]: Novan Inc.
Shares of Novan Inc. (NOVN Stock Report) have surged over the last 2 weeks. NOVN stock was trading around $0.48 at the start of the month and this week have reached highs of over $1. In March we refocused on the company as coronavirus first started taking its grip on the stock market. At the time, Novan was focusing on diseases that affect the immune system. While its pipeline included treatments like STDs and Dermatological treatments, immune treatment-related companies just started getting a lot of attention by those looking at coronavirus stocks.
The company was issued a patent on June 23 titled, “Nitric Oxide Releasing Pharmaceutical Compositions”. It was granted by the Canadian Intellectual Property Office. Furthermore, last month the company reported that it is targeting enrolling the first patient for a phase 3 trial of its SB206 as a treatment for molluscum in September. Furthermore, top-line efficacy results would be targeted for late in Q2 of 2021. Molluscum is a contagious skin condition that generally affects young children. If you’re not familiar with Novan, the company focuses on its Nitricil technology.
A disclosure filing from last week shows some interesting information as well. The company filed an information statement with a letter to shareholders. In it, Novan requested that shareholders support Proposal 2 of its previously filed proxy statement. This is specific to a reverse stock split of between 1:2 and 1:15. Additionally, NOVN stock tested its 200 Day Moving Average on Tuesday. Will that act as resistance or can NOVN push higher? Currently, analysts carry an average rating of “Buy”. Do you agree or disagree? Something else to keep in mind is that the company has published an offering back in June for ‘up to $20.0 million of shares of common stock’. Again whether or not this is a short or long term rally, will dilution risk also be a factor as well?
Penny Stocks To Buy [according to analysts]: Ocugen Inc.
Ocugen Inc. (OCGN Stock Report) has been relatively quiet over the last few months. While it’s up from 52-week lows back in June, OCGN stock hasn’t seen many big moves. For the most part, the penny stock has held in a tight trading channel between $0.20 and $0.30. Most importantly, it hasn’t been able to break above its 50 Day Moving Average for any sustained amount of time for months. But this week’s momentum hasn’t gone unnoticed and OCGN stock has, in fact, tested and broken above its 50DMA.
The company itself focuses on rare and underserved eye diseases. It’s also worth noting that the only “updates” out have come in the form of disclosure statements. The most recent 8-K showed a new corporate presentation set to go on its company website last week. The company offers an ophthalmology portfolio that includes gene therapies, biologics, and small molecules, as well as targets a range of retinal and ocular surface diseases.
Its pipeline includes OCU400 and OCU410 for the treatment of inherited retinal disorders. Its OCU200 is for the treatment of wet-AMD, DME, and diabetic retinopathy. Finally, OCU100 is for retinitis pigmentosa and OCU300 is in Phase III clinical trial for the treatment of ocular graft versus host diseases. The company has a strategic partnership with CanSino Biologics Inc. for gene therapy co-development and manufacturing.
RIght now, it appears that analysts may have become bullish on the penny stock. Among average ratings, it shows firms hold a “Moderate Buy” rating on OCGN stock right now. HC Wainwright has a Neutral Rating while Chardan Capital rates it with a Buy.
Penny Stocks To Buy [according to analysts]: Onconova Therapeutics Inc.
Onconova Therapeutics Inc. (ONTX Stock Report) is another one of the penny stocks analysts have been bullish on. It’s also one of the penny stocks we’ve been watching for a while now. We actually discussed this company over the weekend following an active week last week. Keep in mind if you’re new to the site, we first saw this in early December. Shares traded around $0.25 and Point72 Asset Management had just reported a stake in the biotech penny stock. Now, ONTX stock has seen 2020 highs of over $1 after today’s $1.07 high.
The company most recently announced the e-publication in the international hematological malignancy journal Leukemia Research. These were with regard to results from a Phase 1 company-sponsored study. It was of its oral rigosertib in combination with standard dose azacitidine. The target group included patients diagnosed with either higher-risk myelodysplastic syndrome or acute myeloid leukemia.
So, while its immunotherapy isn’t dealing with COVID-19, it has piqued interest among biotech investors. Worldwide Business with kathy ireland® recently spotlighted key executives from Onconova Therapeutics this week. Since the show streams on outlets like Bloomberg, we had explained that it could be something to note during your DD process. Onconova Therapeutics has received a consensus rating of Buy. This is based on 3 buy ratings in total. The three most recent come from Maxim Group, Noble Financial, and HC Wainwright. The first two funds also have price targets of $1.25 and $1.30 respectively.
Keep in mind that ONTX has been on a huge move this week. So, if it’s on your list of penny stocks there could be profit-taking risk. Despite this, where do you see ONTX stock by the end of the month?