Do You Agree With Analysts On These 3 Hot Penny Stocks?
Penny stocks and small-cap stocks in general have seen a bit of a resurgence recently. What began as a mad dash for the next electric vehicle stock to buy has evolved into finding the next stocks under $5 to rally big. This, in turn, has brought about more attention to certain things. News is obviously the easiest thing to find. Then traders sift through any recent filings finding things like FORM 4s and Schedule 13s. These reveal insider activity and any institutional moves in stocks.
Do you search on social media? If not, that’s another place where companies will release information. In 2013, the Securities and Exchange Commission deemed it appropriate for companies to use platforms like Twitter to make announcements. Here’s where you’ll likely find penny stocks breaking out without anything under their headlines on financial sites. But if you look for social media posts, many have shifted toward these platforms to release news. What else is a good source of information to use when you conduct your DD – due diligence – on penny stocks?
Penny Stocks & Analyst Forecasts
Are analysts ratings part of your strategy? Personally, I feel that ratings paint some of the picture but a lot of these ratings may be outdated. I’ve written on several stocks with certain analyst targets that may have been attainable months ago. However, recent trends might’ve shifted the direction of those stocks a bit more dramatically than an analyst may have factored in.
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This isn’t to say that all penny stocks with analyst coverage are bad or analysts should be discounted. What I am saying, however, is that these are people just as well as you and I. If anything, see what analysts like about certain companies and factor that into your overall thesis. Should you use it as the only source of reason? In my opinion, no. With that said, here are 3 penny stocks with bullish ratings and targets. Do you agree with the sentiment?
Hot Penny Stocks To Buy [according to HC Wainwright]: Second Sight Medical Products Inc.
Second Sight Medical Products Inc. (EYES Stock Report) is one of the companies that’s captivated the attention of traders in December. Back on the 1st, the penny stock experienced an epic move from $1 to highs of $2.37. After settling out the session around $1.50, EYES stock has traded mostly sideways since then. Something to note from a technical perspective is that shares broke above and have held support at the 200-day moving average. This has been a long-standing level of upper resistance for the entire year. This marks the first time EYES stock has sustained any period of time above the 200DMA since last November.
Herein lies the big question. Why is EYES jumping this month? There haven’t been any headlines. The company’s also been quiet on its social media channels. The last filing made was its quarterly update in November. But, still, there’s a bullish sentiment from some analysts on the penny stock. Right now, H.C. Wainwright carries a Buy rating on the penny stock with a price target 78% higher than current levels at $2.50.
What To Watch With EYES Stock
Looking at the history of the company in 2020, Second Sight had to pause its early Feasibility Study of the Orion® Visual Cortical Prosthesis System at UCLA Medical Center. This was due to COVID-19. However, in September the study resumed. It includes four participants at UCLA and two participants at Baylor College of Medicine. Something to throw in the mix is an article from Scientific America* came out Friday highlighting the Orion trial and its progress regarding testing in humans.
So as this trial evidently gains attention and traction, it will be interesting to see how this latest surge in momentum fairs in December. Will we see another big run or is this just another blip on the map for Second Sight?
Hot Penny Stocks To Buy [according to Piper Sandler]: Progenity Inc.
Sometimes traders will look for penny stocks to buy at extreme levels. What I’m referring to are key technical highs and lows at 52-week levels. While all penny stocks won’t fall from new 52-week highs or bounce from 52-week lows, traders do monitor things like this with hopes of either a reversal or continuation in mind. Right now Progenity Inc. (PROG Stock Report) is one of the penny stocks hovering around 52-week lows.
Last week, PROG stock hit $3.08, and considering the company IPOs in June at $15 a share, things haven’t really stood a chance to traders getting long the stock. Will that change this month? Last week the company went on another money-raising spree. Progenity launched a public offering of $25 million of its common shares and a private offering of $75 million of convertible senior notes due 2025.
While these offerings didn’t bode well for the stock, it did bring in money for the company’s R&D initiative. Net proceeds from the offerings will be used to “support the company’s operations, to invest in molecular testing research and development program, to invest in research and development relating to precision medicine platforms”.
What To Watch With PROG Stock
Right now, Piper Sandler has an Overweight rating on the penny stock. It also carries a $15 price target on PROG; 359% higher than the current level. What’s more is that the precision medical company may have gained some steam after a FORM 4 filing surfaced on Friday. It showed CEO Harry Stylli purchased 152,905 shares of PROG stock at an average price of $3.27. Will that spark some bullish momentum in the penny stock finally or have traders written off PROG entirely?
Hot Penny Stocks To Buy [according to HC Wainwright]: Checkpoint Therapeutics Inc.
There’s definitely been building interest from traders in biotech stocks recently; specifically in cancer stocks. Checkpoint Therapeutics Inc. (CKPT Stock Report) is a clinical-stage immunotherapy and targeted oncology company. Checkpoint develops, acquires, and commercializes non-chemotherapy, combination treatments. Its licensed portfolio of antibodies includes targeting programmed cell death-ligand 1 (PD-L1), glucocorticoid-induced TNFR related protein and carbonic anhydrase IX.
Earlier this quarter, the company presented updated positive interim results from its ongoing registration-enabling clinical trial of cosibelimab. This is the company’s treatment for metastatic cutaneous squamous cell carcinoma.
“Based on our planned pricing strategy, we believe cosibelimab can be a market-disruptive product in the $25 billion PD-(L)1 class. Importantly, in order to support the continued development of cosibelimab, as well as our broader oncology pipeline, we expanded our cash runway through the successful completion of a $20.5 million financing during the third quarter,” said James F. Oliviero, President and Chief Executive Officer of Checkpoint in a November release.
What To Watch With CKPT Stock
There’s been more obvious momentum building during the past few weeks. This is shown in the stocks increase in daily volume. In November, CKPT didn’t trade more than 510,000 shares in a single day. In December, the daily volume average sits around 643,000 with Friday seeing more than 820,000 shares traded. There was also a very late-afternoon spike that took CKPT stock to its $2.70 high of the day after trading around $2.50 for most of the session.
Right now HC Wainwright has a Buy rating on the penny stock. The firm also carries a $17 price target right now, 541% higher than its closing price on Friday.
*EYES: https://www.scientificamerican. com/article/bionic-eye-tech-learns-its-abcs/