If you’re looking for the best penny stocks to buy now, you might be looking at different trends. Whether they be industry trends or something more thematic, there’s no shortage of attention-grabbing catalysts. In the stock market today, everything from electric vehicles to energy is in focus.
What’s more, you’ve also got trends dealing with things like stocks with lower floats or higher short interest. In both of these cases, you’ll likely see traders searching for high volatility action.
In this article, we’ll look at 5 penny stocks with high short interest. This trend has come to the forefront of the market thanks to big moves from stocks like AMC, GME, and countless others that went on multi-hundred and thousand percent rallies this year. Of course, stocks like these aren’t for the faint of heart. Many can explode at a moment’s notice while also imploding just as quickly.
5 Short Squeeze Penny Stocks To Watch
- Progenity Inc. (NASDAQ:PROG)
- Kala Pharmaceuticals (NASDAQ:KALA)
- Senseonics Holdings Inc. (NYSE:SENS)
- SmileDirectClub (NASDAQ:SDC)
- Solid Biosciences Inc. (NASDAQ:SLDB)
Progenity Inc. (NASDAQ:PROG)
One of the hot penny stocks to watch this quarter is Progenity. While it’s been a company we’ve followed since it was trading under $1, there has been plenty to look at. Despite a slight earnings miss earlier in November, PROG stock has weathered the storm to some extent. Shares have risen a little over 8% during the morning session on November 15. This was thanks to the news that the company will participate in Piper Sandler’s Virtual Healthcare Conference next week.
Something to keep in mind is that the company is going through a transformation period. This includes a new CEO, Adi Mohanty, who was appointed earlier this month. It also includes additional board appointments and some fundamental changes in its debt structure to the tune of a $20.175 million reduction.
Looking ahead, besides the upcoming industry conference, Progenity has worked toward advancing its Preecludia platform. This is the company’s preeclampsia rule-out test to help physicians evaluate and manage their patients regarding potentially compromised pregnancies. Specifically, the company engaged an advisory firm to launch its licensing process. The company also received a patent allowance for one of the critical assays for the test, adding further support.
As far as short data is concerned, Fintel shows that PROG stock has a short float percentage of 26.37%.
Kala Pharmaceuticals (NASDAQ:KALA)
One of the “short squeeze stocks” we’ve discussed in the past is Kala Pharmaceuticals. While it doesn’t have as high a short float percentage as PROG, Fintel shows KALA stock sitting at roughly 17.89% short float right now. The company develops treatments for eye disease and has been in focus (no pun intended) for its EYSUVIS® and INVELTYS® treatment platforms. These target dry eye disease and post-operative inflammation and pain following ocular surgery, respectively.
This week, Kala made acquisition headlines, which has turned attention to the stock. The company acquired Combangio Inc., which is developing regenerative biotherapies for ocular surface diseases. “Today’s acquisition marks a pivotal moment for Kala and a meaningful acceleration toward our goal of strengthening Kala’s pipeline for the treatment of front and back of the eye diseases,” said Mark Iwicki, Chief Executive Officer of Kala, in a press release.
The company also reported third-quarter earnings showing solid increases in EYSUVIS prescriptions. This increase was 19% higher than the figure reported in the second quarter of 2021. Looking ahead, the latest acquisition could bring more near-term events to keep track of. This includes progress with Combangio’s treatment, now labeled KPI-012 for assisting in wound healing in revere ocular diseases. Kala said that it expects to announce preclinical pharmacokinetics and efficacy data in the first quarter of 2022. With Q4 coming to an end, Q1 2022 is quickly approaching and could be something to keep in mind if KALA stock is on your list right now.
Senseonics Holdings Inc. (NYSE:SENS)
This list is full of repeat short-squeeze candidates. Senseonics is one of them as it has continued bouncing back this quarter. Overall, the year-to-date trend isn’t too shabby either. SENS stock has climbed from below $1 to as high as $5.56 and currently sits above $3.70 heading into the new week.
Senseonics specializes in medical device development. Specifically, its Eversense platform offers users a way to track glucose data without using old-school finger prick options. The device is implanted and sends data to users continuously thought the day in 5-minute intervals. With its latest quarterly results, the market is now well-aware of the progress the company has made. Senseonics beat EPS estimates by a wide margin, coming in at $0.10 compared to what some expected to be a loss per share of $0.06. While it slightly missed sales estimates, there’s still optimism surrounding its growth.
“We are encouraged by the excitement demonstrated by patients and HCPs for the 180-day sensor in the US and we are pleased with the progression of the review and are hopeful the FDA will reach an approval decision in the coming months based on the positive PROMISE Study results. We look forward to launching the new system shortly after approval.”Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics
Right now, Fintel’s short float percentage data shows SENS sitting around 25.24% right now.
SmileDirectClub has been in and out of the spotlight for weeks. As one of the favored meme stocks to watch, it has seen its share of volatility. However, after reporting less-than-stellar earnings, shares are once again back in penny stock territory. SmileDirect missed EPS estimated by a wide margin while also coming up short on sales.
The disappointing results were further echoed by analysts. Craig-Hallum, Loop Capital, and Goldman Sachs were among the firms to slash price targets. However, this week there are a few things that have brought some reprieve in the market. First, SmileDirect is participating in a presentation at the Stifel 2021 Virtual Healthcare Conference. Next month the company also attends the Evercore ISI HealthCONx and Stephens Annual Investment Conferences.
Furthermore, the company recently highlighted the launch of its SmileOS treatment planning software. According to the company, it’s designed to allow its affiliated network of doctors to treat more patients and better visualize treatment. Using artificial intelligence, SmileOS can analyze data to deliver more accurate treatment plans.
Where does SDC stock sit on the short side of things? According to Fintel, data shows the short float percentage on the penny stock hovering around 32.96%.
Solid Biosciences Inc. (NASDAQ:SLDB)
On the less active side of the coin, Solid Biosciences joins this list of penny stocks. According to Fintel, the short float percentage on SLDB stock is sitting above 16.6% right now. The company’s shares have been under pressure for most of the year and unable to break above its 50-day moving average.
Part of this negative sentiment is due, in part, to some uncertainties in its treatment pipeline. Earlier this year, the company reported adverse side-effects in one of its gene therapy patients undergoing treatment with SGT-001 in Duchenne muscular dystrophy, sent shares lower. It was also considered a “serious” adverse event. However, jumping ahead a few months, the company has reported continued progress heading into the end of the year.
More importantly, if you’re looking at SLDB stock right now, SGT-001 is expected to begin additional patient dosings this quarter. This is the same treatment that brought such negative sentiment earlier in the year. Ilan Ganot, Chief Executive Officer, President and Co-Founder of Solid Biosciences, explained in the last corporate update, “As we prepare to dose additional patients in IGNITE DMD, we enter the fourth quarter with a great deal of excitement and momentum around our opportunities to improve outcomes for patients with Duchenne.”
Penny Stocks to Watch Right Now
With traders searching for stocks with high short interest, some of these names have joined a few watch lists to start the week. Remember that just because short float percentages are high, there isn’t any guarantee of an actual squeeze. Regardless, knowing the “playing field,” so to speak, can help you to better understand why some stocks are moving the way that they are.