Penny Stocks Insiders Decided To Buy This Month
Who doesn’t like to take advantage of cheap prices? When it comes to penny stocks, compared to companies like Apple or Amazon, their prices may seem like they offer a steep discount. You also can’t forget that you’re also more likely to be looking at an early-stage company than one with a long track record of successful operations. Albeit riskier, penny stocks can offer something that the higher-priced stocks usually cannot: significant gains quickly.
It’s more than possible to make money with penny stocks, and it isn’t difficult to develop the skills to do so. If you’re getting into this world of high volatility trading, there are a few things to keep in mind before you blindly dive in. The first thing is that you’re here to make money, not buy wallpaper.
How To Put Together A List Of Penny Stocks
What I mean by this is that even before you purchase a stock, have an exit strategy in mind and proper profit targets laid out. Don’t forget that even if you “sell too early,” there will likely be more chances to re-enter a trade if the trend is strong. Next, keep your emotions in check. Greed and fear can play prominent roles in trading.
More times than not, they end up resulting in holding onto a stock for too long or selling out/buying in too early. By taking a more robotic approach and sticking to your predetermined strategy, there are plenty of ways to consistently make money with penny stocks and not needing to rely on big home run trades to fuel your portfolio’s growth.
Finally, research, research, research. This is a cornerstone to finding the top stocks for your watch list. Understanding news, finding details regarding upcoming events, and digging through filings help build a robust list of penny stocks to watch. This article will look at five companies that saw insider buying in December.
Penny Stocks To Buy According To Insiders
- Party City Holdco (NYSE: PRTY)
- Spark Networks (NYSE: LOV)
- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX)
- Vyne Therapeutics (NASDAQ: VYNE)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
Party City Holdco (NYSE: PRTY)
Shares of Party City have flirted with the upper end of the penny stock range for the last few sessions. The party supply company’s stock reached lows of $5.13 last week amid the broader stock market sell-off. Fears of a repeat 2020’s pandemic flooded the market and triggered an exit from retail stocks. Since then, however, PRTY stock has managed to rebound strongly at the start of the week. What’s more, Wall Street firms are becoming more bullish on the former penny stock. Friday, S&P upgraded the company to B with an outlook of Stable.
PRTY Stock Insider Buying
Late last week, Clifford Sosin filed a Form 4 showing an indirect purchase of PRTY stock. In total, via Sosin’s affiliated investment funds, 470,000 shares were purchased. The trading was done on December 1 at an average price per share of $5.3198. This also brought Sosin’s total holdings to over 16.4 million shares.
Spark Networks (NYSE: LOV)
Shares of Spark Networks have enjoyed a strong move over the last few weeks. If you’ve read our previous updates, LOV stock was mentioned in an article last month discussing penny stocks insiders were buying in November. At the time, a 10% owner in LOV stock, Osmium Partners, added to its already significant position picking up more than 1.65 million shares at average prices between $2.50 and $2.69. Spark offers social dating platforms and associated brands. Its portfolio includes Zoosk, Christian Mingle, Silver Singles, Elite Singles, and Jdate.
LOV Stock Insider Buying
Once again, Osmium Partners is in the spotlight for insider buying activities. The firm purchased over 100,000 shares of LOV stock between December 1 and December 3 at average prices ranging from $3.10 to $3.21. As of its most recent purchase, Osmium reported an indirect ownership stake of more than 2.5 million shares.
Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX)
Last week we discussed Cumberland Pharmaceuticals on a list of penny stocks to watch under $4. Since then, CPIX stock has continued its bullish move in December. One of the significant catalysts for the biotech company came after it reported that the FDA approved expanded labeling for its Caldolor, an intravenously delivered ibuprofen. In addition to this, with the omicron variant commanding headlines this month, we discussed another side to Cumberland. Its Vibativ (telavancin) platform has shown some COVID-related success.
This summer, Cumberland released a series of case studies outlining Vibativ in treating secondary bacterial infections in patients. Dr. Joseph Reilly, a clinical pharmacist specialist for infectious disease and critical care at AtlantiCare Regional Medical Center in Pomona, N.J., provided two COVID-19 patient cases for the dossier. He also explained in a June release that “These cases illustrate the clear need for an antibiotic like telavancin, which rapidly and effectively eradicates secondary bacterial pneumonia that can develop in patients with COVID.”
CPIX Stock Insider Buying
Last week, a series of Form 4s filed by officers and directors of Cumberland showed insider buying activities throughout November. Since the final purchases in the series of trades were made on November 30, the official filings came out at the start of December. You can view all of those CPIX Form 4s to see the details for yourself. However, one thing to understand is that most of these purchases were made as part of a Rule 10b5-1 trading plan adopted during March 2021.
Vyne Therapeutics (NASDAQ: VYNE)
Another one of the biotech penny stocks on this list is Vyne Therapeutics. The company specializes in developing treatments for immuno-inflammatory conditions. Its lead BET inhibitor candidate, VYN201, is expected to enter the clinic next year. This is in addition to an already robust pipeline of other candidates under development.
In the company’s most recent corporate update, Vyne’s CEO, David Domzalski, said that VYN201 demonstrated “a strong ability to effect multiple pro-inflammatory pathways while also appearing to be well tolerated in animal models. As we move toward 2022, creating shareholder value remains front and center for our company, and we look forward to our Phase 2a data readout for FMX114 in Q1 2022 and advancing our lead BET inhibitor candidates.”
This seems to have prompted interest from analysts this month. HC Wainwright recently put a Buy rating on the penny stock along with a price target of $7.
VYNE Stock Insider Buying
In addition, Vyne has also seen insiders growing bullish on the penny stock. Last week, a new Form 4 was filed. It showed Director Patrick Lepore picked up 12,500 shares at an average price of $1.0159. According to the footnotes of the filing, shares were purchased pursuant to a 10b5-1 plan entered into on April 21, 2021. This latest buy brought Lepore’s position to more than 60,000.
Allied Esports Entertainment Inc. (NASDAQ: AESE)
Esports and metaverse stocks have been in focus throughout the second half of the fourth quarter this year. Virtual reality, augmented reality, and digital assets are gaining momentum. Allied Esports specializes in different facets of the budding online gaming ecosystem.
In particular, since the sale of its World Poker Tour asset to Element Partners earlier this year, Allied has been looking at strategic alternatives to leverage its position in the digital arena. The company expressly stated that it has sped up its plan for exploring different options for the esports business including its sale. Allied said in its corporate update last month that, “The Company has been in contact with a number of investment banks to assist in the process and expects to officially engage a firm in the near future.”
With a question mark on Allied Esports as a company, speculation may have helped drive momentum for AESE stock in the meantime.
AESE Stock Insider Buying
Last week, Knighted Passtures LLC, a 10% owner, reported the purchase of more than 1 million shares of AESE stock. From November 30 to December 2, the firm bought shares at average prices ranging from $1.80 to $1.87. With an apparent bullishness from firms like Knighted, it will be interesting to see how this story unfolds.
Penny Stocks To Buy Or Avoid
As discussed above, research is key. Obviously, insiders purchasing shares can be seen as a bullish event. However, that isn’t the only item to put on your list of “important events” to consider. Regardless, insider trading has been a gauge to understand how the company or interested parties feel about the future prospects. Will these be on your list of penny stocks to watch heading into the new year?
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