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3 Hot Penny Stocks To Buy In December According To Insiders

Does Insider Buying Mean A Bullish Outlook For These Penny Stocks?

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Penny Stocks Insiders Decided To Buy In December 2021

Penny stocks are a great way to make money in the stock market without waiting years for a return. Even though they’ve got more risk to account for, the way traders can leverage smaller sums of capital to reap hefty gains isn’t something to ignore. With that comes many different styles of trading.

Some will treat these cheap stocks like a roulette game, while others will take time to research different trends and market themes. Today we look at another round of penny stocks to buy, according to insiders this month. This adds to the growing archive of insider action during December. To see ten more penny stocks with insider buying, check out our article: 10 Penny Stocks To Buy In December According To Insiders.

Penny Stocks To Buy According To Insiders

  1. ARC Document Solutions Inc. (NYSE: ARC)
  2. NovaBay Pharmaceuticals (NYSEAMERICAN: NBY)
  3. Katapult Holdings Inc. (NASDAQ: KPLT)

1. ARC Document Solutions Inc. (NYSE: ARC)

Shares of ARC Document Solutions have quietly made their way higher throughout 2021. There haven’t been many (if any) social-media-fueled or hyped-up breakouts. However, over the last 12 months, ARC stock has maintained an uptrend that has seen shares appreciate as much as 130%. What’s more, unlike many other high-volume penny stocks, ARC is relatively quiet in comparison. The highest volume day of the year saw this penny stock trade just over 1.5 million shares. The rest of the time, we’re talking about days where ARC barely trades 100,000 shares.

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Regardless, it hasn’t paused the significant uptrend in 2021. The company continues focusing on its core business in servicing clients in the design, marketing, construction, and commercial real estate industries. ARC offers document distribution and graphic production services.

In addition to solid revenue growth following its Q3 results, another highlight for ARC stock is that it’s one of the few penny stocks offering a dividend. The company recently announced a 150% increase in its quarterly cash dividend to $0.20 per share.

ARC Stock Insider Buying

This is one company with no shortage of bullishness from insiders. If you look at the ARC stock filings page, you’ll see what I mean. There’ve been few months where there aren’t any Form 4s filed, and that goes for December as well. This month, the company’s CEO and CTO purchased over 170,000 shares at average prices ranging from $2.7006 to $2.9929.

2. NovaBay Pharmaceuticals (NYSEAMERICAN: NBY)

One of the penny stocks we’ve discussed recently is NovaBay Pharmaceuticals. This is thanks to the recent spike in attention on virus stocks. The company’s main business involves developing products for eye care. However, the more prominent focus is on its offering of KN95 masks during the pandemic.

With the first line of defense being addressed by PPE, NBY stock could be one to watch as virus concerns reemerge. While there’s still a lot of ground to make up in the stock market, its recent trend has been relatively bullish. Shares of NBY stock have jumped over 30% since the start of the week. What do insiders think about NovaBay?

NBY Stock Insider Buying

Like ARC, there has been no shortage of insider buys in NBY stock. If you look at December’s filings so far, you’ll see what I mean. Since the beginning of the month, more than 600,000 shares have been purchased by insiders and at average prices ranging from $0.43 to $0.49.

3. Katapult Holdings Inc. (NASDAQ: KPLT)

Katapult is another penny stock that has come under some pressure this year. In fact, at one point, shares traded above $10. Bad earnings were one of the root causes of the collapse of this stock earlier in the year. Since then, Katapult has attempted to recover but to no avail. However, this week, KPLT stock has bounced from its 52-week lows of $2.63, now sitting back above $3.50.

With the rise of interest in financial technology stocks, KPLT has been in and out of the spotlight this quarter. The company specializes in point-of-sale solutions for consumers with limited access to traditional financing options. The company offers a lease-to-own platform for consumers. Despite declining originations and concerns over earnings, insiders appear bullish, at least for now. That’s based on recent filings from the company.

KPLT Stock Insider Buying

This week, Director Brian Hirsch reported the purchase of 60,000 shares of KPLT stock. The average price paid was $3.0765, and this latest buy brought his total holdings to 85,000 so far. If you’ve followed the company for the last six months, you may recall the slew of insider buys back in August. This came as seven officers/directors stepped in to purchase shares of KPLT stock between average prices of $3.66 and $4.42.

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Should You Buy Penny Stocks That Insiders Pick Up?

This type of trend generally attracts traders who “follow the money” or search for “whales” buying shares of companies. When these insiders or whales (which can also be hedge funds and investment firms) buy blocks of stock, the market tends to take notice. While it’s great to see support from big money bets, everything needs to be kept relative. That goes for stocks with insider selling as well. For example, This week, the Chief Science Officer of Tyme Technologies (NASDAQ: TYME) sold over $100,000 worth of company stock.

Depending on the size of your portfolio, this may be considered a “large” trade. However, if you pick apart the TYME Form 4 filing details, you might see a different picture. Yes, he sold that amount of shares, equal to just over 150,000. However, the sale only equated to less than 2% over his entire holdings. Does this mean it’s time to run for the fences in panic?

At the same time, one of the 10% holders of Allied Esports Entertainment (NASDAQ: AESE), Knighted Pastures LLC, bought nearly $400,000 worth of AESE stock this month. However, that only equated to an uptick in their holdings of roughly 3%. Does that mean this is a blockbuster buy for the firm? I’ll leave the final decisions up to you. In my opinion, when it comes to insider buying, it’s good to know but should also be just one part of the entire diligence process.

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By J. Samuel

As a trader and expert finance writer, I enjoy finding new and emerging trends that may have been overlooked by the average masses. If there's one thing that a trader or investor wants to know, it's how to use valuable data to their advantage. My expertise is in uncovering this data and compiling it into actionable information. As a professional finance writer, I've contributed to many of the top finance platforms and pride myself on researching factual, publicly available information and using that in all of my articles.

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