Why Are Analysts Putting A Buy On These Penny Stocks?
I’ve discussed penny stocks and analyst ratings in the past. Are they the end-all and your ultimate source of information? In my opinion, no but that doesn’t discount the fact that they may be a point of focus while you research. One of the biggest flaws that I feel ratings and targets have is the timing at which they issue their outlook. This is especially true when we talk about cheap stocks.
What may be important “now” might not have relevance in the future. One of the things to remember is that many of these companies are in the early stages of growth. This means that it isn’t uncommon to see certain businesses evolve. In some cases, they may become different businesses entirely. We saw a lot of that happen last year during the first few months of the pandemic.
In a last-ditch effort by some companies, they completely changed their businesses to meet the growing demand for things like PPE, sanitizing products, and, of course, vaccines. The biotech sector became the best example of businesses shifting models. Everything from cancer stocks to pain management companies transitioned into coronavirus vaccine stocks. We even saw certain tech companies pull a completely random move to start selling face masks and hand sanitizers.
Last year was definitely a wild year for stocks. But my point is that had an analyst weighed in on a company in January, and the actual business could have been completely different by March & April. Does this mean the analysts were incorrect? Not necessarily, but as traders, it’s important to keep timing in mind. When were ratings made, have there been updates, and what price was a stock trading at when a target was issued? With this in mind, here are a few penny stocks to buy, according to analysts. Are they on your list today?
Penny Stocks To Buy [according to analysts]
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Assertio Holdings Inc. (NASDAQ: ASRT)
- ThermoGenesis Holdings, Inc. (NASDAQ: THMO)
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Atossa Therapeutics Inc. (NASDAQ: ATOS)
This has been one of the more active penny stocks we’ve discussed over the last few weeks. Initially, it was based on the fact that ATOS stock fell in December, gapping down from $1.57 to under $0.90. The drop came after the company announced a $20 million public offering at a discount to market. Of course, traders aren’t keen on dilution. In this case, Atossa raised the money at a steep discount to its retail price at the time.
Needless to say, things have grown bullish once again. Not only has Atossa filled its gap, but it also tested levels near November’s high. The company is one of the ones that “evolved” during the pandemic. The company focuses on breast cancer as well as COVID-19. Most recently, the coronavirus has been its bigger focus. As of a month ago, the company was in a Phase I study to see the efficacy of its drug, AT-301. This is a nasal spray that can be taken at home by those suffering from the coronavirus.
As far as potential milestones to keep in mind, the company has raised all of this money to put toward a few initiatives. This includes filing a pre-IND meeting request with the FDA for AT-301 and the commencement of a Phase 2 study in Sweden for its Endoxifen to reduce Mammographic Breast Density.
Analysts at Maxim currently have a Buy on the stock and an $8 target. That puts the firm’s ATOS stock forecast over 350% higher than current prices.
Assertio Holdings Inc. (NASDAQ: ASRT)
Brookline Capital is one of the firms covering Assertio right now. When it weighed in on ASRT in 2020, analysts gave it a $3.50 price target and had a Buy rating. Unlike Atossa, Assertio has been a bit more sporadic with headlines.
One of the things that traders have followed, however, is the company’s restructuring plans. Since covering this company in December, ASRT stock has climbed from just 34 cents to highs this week of nearly 80 cents.
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“To adapt to the current market environment and maximize shareholder value, we are refocusing and substantially reducing our operating footprint, which is expected to result in significant cost savings,” explained Arthur Higgins, Chairman of Assertio, in a press release. This is what we can rely on for the most current info on the company. Meanwhile, the penny stock has gone on a dramatic rise. Will that continue?
ThermoGenesis Holdings, Inc. (NASDAQ: THMO)
It hasn’t climbed as much as these other two companies, but ThermoGenesis has begun turning heads in 2021. The company hasn’t been very vocal as far as press releases are concerned. Furthermore, the last filing was back in mid-December. Sadly, it was to inform the public that one of its board members had passed away.
Something we can say is that ThermoGenesis remains one of the cancer stocks to watch right now. It uses therapies targeting the chimeric antigen receptor or CAR-T. Specifically, the company markets a full suite of solutions for automated clinical biobanking and automation for immuno-oncology. This includes a semi-automated, functionally-closed CAR-TXpress™ platform. This platform streamlines the manufacturing process for the CAR-T immunotherapy market.
Despite a lack of news, it hasn’t stopped analysts from weighing in. Late last year, H.C. Wainwright gave a price target of $8.50. The firm also carries a buy rating on the penny stock.
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
Tonix has also been one of the big movers of the last few weeks. Albeit a volatile one, TNXP shares have climbed from around 56 cents to highs this week of nearly $1. Analysts at Alliance Global Partners are also bullish on the outlook of the stock. Last year, the firm boosted its price target on the stock to $3. That puts the TNXP stock forecast 209% higher than current trading levels.
What has Tonix been working on to justify this move and bullish outlook? Aside from closing a multi-million dollar offering earlier this month, its treatment platform has been in focus. It published a patent application covering its TNX-1500 treatment. Specifically, this is for preventing and treating conditions, such as organ transplant rejection and autoimmune disorders. The company is also researching the therapeutic potential of TNX-1500 with Massachusetts General Hospital for kidney transplant rejection. This latest research initiative is in addition to the study of TNX-1500 in heart transplantation at MGH that began last year.
With these developments and the recent surge in momentum, will Tonix be on your list of penny stocks to watch?