We’ve got one day left before it’s time to turn the page on 2021, and penny stocks are a core focus for some traders. These cheap shares have become a mainstay for the new breed of retail investor seeking out high volatility action. It isn’t surprising to see at least one of the most active penny stocks surging hundreds of percentage points on millions of shares traded on an almost daily occurrence. This is why penny stocks have been worth the risk in 2021. But what comes next?
Penny Stocks TL;DR 30-Second Summary
- When it comes to penny stocks traders usually buy for quick gains
- Certain market trends can trigger longer-term moves
- Heading into 2022, the search is on for penny stocks to buy that could kick start the new year on a high note
- Today we look at some of the most active penny stocks to watch
New industry trends are sure to emerge. But when it comes to penny stocks, a lot has to do with momentum. Where’s the action in the stock market today? That’s a question I’m sure you’ve even asked yourself. So today, we’ll do just that and check out some of the most active penny stocks to watch as a new year approaches.
Most Active Penny Stocks Today
- ContextLogic (NASDAQ: WISH)
- Inspira Technologies (NASDAQ: IINN)
- American Virtual Cloud Technology (NASDAQ: AVCT)
- Progenity Inc. (NASDAQ: PROG)
ContextLogic (NASDAQ: WISH)
When the pandemic was in full swing, how many people can honestly say they used an app called Wish to buy cheap stuff? I’m sure you at least know someone who did. One year after its official public debut under the ticker symbol, WISH, ContextLogic has a lot of ground to make up. Shares have dropped from over $18 to under $4. But with a renewed interest in China-based stocks, this is a company traders have started watching again.
The online shopping store’s shares have also resonated with the social sentiment crowd. The idea that it might be a haven for those looking for “alternatives” to brand-name items has appealed to plenty of investors. Meanwhile, the depressed price level compared to just one year ago is also a point of interest for some.
Is WISH stock a buy right now? Well, with over 20 million shares traded as of this article, that has been a surge of attention in the stock market today. What’s more, Citigroup and Stifel analysts have price targets sitting at $5.50 and $5 right now. Looking to the new year, you’ve also got to keep in mind that ContexLogic is still undergoing an executive search for a new CEO. After reporting its Q3 results (an EPS and sales beat), ContextLogic discussed its plans for a new Chief Executive after Piotr Szulczewski was said to be stepping down. With renewed interest in Chinese stocks and the search for new leadership, WISH has become one of the most active penny stocks to watch before 2022.
Inspira Technologies (NASDAQ: IINN)
Recently, one of the short squeeze penny stocks on our list was Inspira Technologies. The short interest stocks have been growing in popularity this year. Thanks to massive short-term spikes in stocks like AMC, GME, and hundreds of others, the “chance” to see a squeeze is a big sticking point for some. If we look at data from Fintel.io, we can see that the short float percentage on IINN sits north of 14% as of this article. With fewer than 10 million shares outstanding, the structure of the penny stock has also landed itself to high volatile swings over the last few months.
Inspira has been inking new international deals to distribute its ART device. This is the company’s respiratory support system that functions as an artificial lung. The latest deals include expansion into Spain, Eastern Europe, the Middle East, and Africa. Its most recent deal came in December when the company signed with Innovimed to open Poland, Slovakia, and the Czech Republic.
With momentum building into the end of the year and high search volumes for short squeeze stocks, IINN seems to be one on a few watch lists right now.
American Virtual Cloud Technology (NASDAQ: AVCT)
Shares of American Virtual Cloud Technology have seen a strong push into the end of the year. Since hitting 52-week lows of $0.84 earlier this month, AVCT stock has managed to bounce back above the $2 level this week. As discussed earlier this month in our article “Penny Stock News Sent These 5 Small-Caps Stocks Soaring Today,” strong revenue growth projected for its Kandy business unit has resonated with the market. This is the company’s cloud communications platform. American Virtual expects revenues to grow from $14.3 million last year to $37 million in 2021.
Adding to this were headlines this week. Kandy Communications announced that it grew its partnership with Etisalat, a telecom group in emerging markets. It also announced new offerings allowing for embedded communications in business applications for large enterprises in those markets. These include embedding real-time communications into critical telehealth applications.
However, if AVCT stock is on your list, there is something to be aware of. The company filed for a potential secondary offering by some of its shareholders. The filing shows possible resale of up to roughly 38 million shares. The risk here involves potential dilution risk depending on selling prices by these shareholders. Nothing further has been released, but this is something to note for now.
Progenity Inc. (NASDAQ: PROG)
A popular short interest stock from earlier this year, Progenity is back on the radar. Shares rallied during the start of Q4 thanks to a mix of speculation and company updates. PROG stock managed to jump from under $1 to over $6 before pulling back over the last month.
The company develops treatment technology for gastrointestinal health and oral biotherapeutics. Last week the company formalized the exit from its laboratory business to further streamline its operational focus. Northwest Pathology purchased Progenity’s lab business for $10.9 million. Adi Mohanty, Chief Executive Officer, explained that “Completing this transaction is important to us as we focus on delivering on our biotherapeutics pipeline.”
Last quarter Progenity launched a managed process to license its Preecludia test platform to commercial partners. This is the company’s diagnostic test for preeclampsia during pregnancy. Heading into 2022, any commercial activity will likely be something the market looks for updates about. That’s in addition to any further updates on other pipeline platforms, including its Oral Biotherapeutics Delivery System, of which it entered into a partnership earlier this year with a “large” pharmaceuticals company for evaluation.
Active Penny Stocks To Watch Today
These are some of the most active penny stocks today. That’s based on overall trading volume and relative discussion activity among retail traders. The one thing to keep in mind is that “activity” is subjective to individual stocks. It’s up to you to thoroughly research and determine the best penny stocks to buy according to your personal trading style.
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