These Current & Former Penny Stocks Are Making Their Mark In 2021
Penny stocks have been a big focus for retail traders over the last few years. In fact, if you look at any of the top small-cap stock ETFs, the trend is clear right now. Since the depths of the pandemic drop, the Russell Small-Cap ETF (NYSE: IWM) and the S&P Small-Cap ETF (NYSE: IJR) have climbed by more than 100%. What’s more, the current U.S. Administration has worked on programs to fuel more growth for smaller companies.
Even with the recent bout of selling pressure, analysts are still expecting a strong performance this year. “The Russell 2000 is pausing in an uptrend, so we do ultimately expect a new high above 2,360. In terms of support levels, it’s currently oscillating around its 50-day average at 2,235, followed by its 100-day average at 2,105.”Ari Wald, head of technical analysis at Oppenheimer
Wald further went on to say that “Now that small caps have underperformed, that’s where our focus shifts.”
Small Cap & Penny Stocks To Watch
Considering that there is plenty of volatility in the stock market right now, there is a bit more justification for retail traders to look at smaller stocks. The main reason for this is based on the general sideways trend in the overall markets. While the day-to-day for the S&P and Dow have been somewhat volatile, the overall direction has been sideways for weeks. So where there is “alpha” there is opportunity. This is one of the reasons that things like penny stocks have. grown in popularity even in light of broader market trends.
- GT Biopharma Inc. (NASDAQ: GTBP)
- Ardelyx Inc. (NASDAQ: ARDX)
- PDS Biotechnology Corporation (NASDAQ: PDSB)
- Vaxart Inc. (NASDAQ: VXRT)
Former Penny Stocks To Watch #1: GT Biopharma Inc. (NASDAQ: GTBP)
GT Biopharma has been on our list of penny stocks to watch for months. However, 2021 has been a milestone year for the company. Not only has it exited penny stock levels, but it has also managed to up-list to the Nasdaq. Recently, analysts have grown bullish on the company. Both Roth Capital and B. Riley have reiterated their stances on GT Biopharma backed up by price targets ranging from $21 to $25 right now.
B. Riley analysts Justin Walsh and Mayank Mamtani explicitly stated that “The longer you look, the better it gets” when discussing GT Biopharma’s pipeline and lead treatment GTB-3550 TriKE™ (click here for the full analyst report). They “believe that the future and clinical development pathway for GTB-3550 will be clearer by the end of the summer, with multiple potential outcomes providing opportunities for investors to benefit.”
Roth’s Tony Butler came out with updated information as well (click here for full update). “We are particularly interested in what the recommended phase II trial might be.” Furthermore, the $25 price target is derived from a risk-adjusted net present value analysis of the utility of GTB-3550 in acute myeloid leukemia and myelodysplastic syndrome in the U.S. and Europe (2024/26 launch, approx. $1.5-2 bn peak sales, 40-55% POS).”
What To Watch With GTBP Stock
Wednesday was one of the bigger days for investors looking at GT Biopharma. The company hosted an interim GTB-3550 TriKE™ data review call with Dr. Jeffrey S. Miller. Among several key highlights, Miller expressed the untapped potential that the company’s TriKE platform as a whole has the ability to address numerous cancer types. Recent highlights discussed on the call were GTB-3550’s ability to lower bone marrow blast levels by as much as 63.7% in some patients. Another unique aspect of the current trials is that GTB3550 TriKE could induce reproducible Natural Killer cell proliferation in all patients at all dose levels evaluated. The “unique” part is that no clinically significant toxicity was experienced.
The TriKE platform has also begun expanding to include other applications and targets. The goal of TriKE is to enrich the tumor microenvironment with functional NK cells. Its ability to uniquely costimulate with a protein IL15 and GT’s TriKE B7H3 has shown potential to reduce tumors. In particular, it demonstrated significant killing of MA148 ovarian cancer using the B7H3, according to Miller’s commentary on the Wednesday afternoon call (playback call can be accessed by clicking here & using Replay Access Code: 10156826). Additional TriKEs are planned for milestones in 2021 as well, including GTB-4550, 5550, and 6550 in addition to GTB-3550.
While the data showed promise, there was an interesting point in the Q&A that listeners may have caught. CEO Anthony Cataldo was asked if the company was considered partnering with another larger company for clinical trial expansion. Cataldo responded with, “We are in discussions but can’t talk anymore on that.” Considering the milestones reached and a potential collaboration plan, along with bullish analysts, it might not be as unusual to see that GTBP stock has climbed nearly 200% since the start of March.
2: Ardelyx Inc. (NASDAQ: ARDX)
Shares of Ardelyx Inc. took flight this week following a brief sideways period in the market. While there weren’t any major headlines from the company, there were other things to note. A look on the FDA website shows new progress being made with the company’s New Drug Application of IBSRELA®.
Under “Supplements, a new label was updated on May 19th. IBSRELA® is the company’s treatment for irritable bowel syndrome with constipation in adults. Back in September, the company submitted the NDA to the FDA to use IBSRELA® to control serum phosphorus in adult patients with chronic kidney disease on dialysis.
What To Watch With ARDX Stock
In the management commentary, Mike Raab, president and chief executive officer of Ardelyx, explained, “With potential approval in the second quarter of 2021, we continue to advance commercial preparations for the launch of tenapanor, a first-in-class, non-binder therapy that targets the primary pathway of phosphorus absorption.”
There was a PDUFA date set for the end of April, which was extended until the end of July. So this could be another future event to keep track of. Either way, new progress has clearly become an interim catalyst this week for ALDX stock. Furthermore, among analysts weighing in on the stock so far, Wedbush and Cantor Fitzgerald initiated coverage with Outperform and Overweight ratings as well as $14 price targets.
Former Penny Stocks To Watch #3: PDS Biotechnology Corporation (NASDAQ: PDSB)
Another rockstar among small-cap stocks is PDS Biotechnology. We’ve discussed the company for more than a year, and it’s hard to believe that at one point, PDSB stock was trading at $0.62. Fast-forward to this week, and shares are once again inching closer to new 2021 highs. For some reference, the highest PDSB stock traded this year was $7.30. Wednesday afternoon, following the closing bell, shares reached highs of $7.34. One of the recent drivers of the former penny stock stems from a series of updates in May.
Not only did the company report an earnings beat, but management also discussed PDS0101 and the Versamune® platform in oncology. There’s an upcoming event that could shed more light on its PDS0101 treatment in particular. A current trial evaluates the candidate with two clinical-stage immunotherapies from EMD Serono, a first in class bifunctional checkpoint inhibitor Bintrafusp Alfa (M7824) and an antibody conjugated cytokine M9241 (NHS-IL12).
What To Watch With PDSB Stock
The trials are focused on patients with different types of advanced HPV-associated cancers whose cancer has returned or spread after treatment. PDS presents interim efficacy and safety data of PDS0101 on June 7th at the American Society of Clinical Oncology (ASCO) 2021 Annual Meeting.
This week the company published the abstract by the ASCO. It summarizes the interim data from the National Cancer Institute-led Phase 2 trial. Furthermore, Chardan Capital analysts updated their stance on the company ahead of the June presentation. Chardan maintained its Buy rating and raised its price target to $11.
Vaxart Inc. (NASDAQ: VXRT)
When you talk about former penny stocks that hit it big in 2021, Vaxart is likely also on the list. As another company that was trading around $1 last year, the progress made in such a short period of time is unmissable. In fact, at one point this year, VXRT stock reached highs of $24.90.
What was the catalyst for this move? A clear focus on vaccine stocks and a little bit of technical finesse in the market helped spark the wild move earlier this year. Sizeable short interest and some positive momentum ended up triggering the jump to those 2021 highs. However, after the dust settled, is there more than just technicals to look at with Vaxart?
If you ask some retail traders, they say yes. The last few weeks have been active for the stock and company. Vaxart appointed new board members and hosted several presentations focusing on its platform’s potential to address COVID-19. Furthermore, early-stage vaccine results were reported and showed progress.
What To Watch With VXRT Stock
“Our vaccine’s immune response appears very different than that seen from the leading injectables: mucosal antibodies rather than serum antibodies, and more potent T-cell responses,” said Chief Executive Andrei Floroiu in a press release earlier this month. Compared to Pfizer and Moderna’s vaccines, the company said its VXA-CoV2-1 produced more t-cell responses than mRNA vaccines.
Given the added interest in treatments for coronavirus and the latest surge in market momentum, VXRT stock has regained momentum from late April. Furthermore, the consensus from analysts appears bullish at the moment. B. Riley, for instance, currently has a Buy rating on the stock along with a $13 target. With the company just beginning to dose subjects in a new Phase 1B norovirus study, there could be several things to keep in mind this year if VXRT stock is on your watch list in May.
Penny Stocks, Small-Caps & Risk
It doesn’t matter if we’re talking about penny stocks or higher-priced small cap stocks, risk still plays a big role. Considering that these are not massive companies, volatility can play its part in wild market fluctuation. If you look at many of the charts in this article, you’ll see what I mean. Needless to say, strong progress is one of the hallmarks of true potential. In light of this, it’s important to keep track of not only the recent milestones but what comes next. In this light, you can gauge some of the market sentiment and understand why certain stocks are moving the way they are.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP).