Penny stocks can be incredibly exciting if you know how to trade them. In a given day, we’ll see at least a handful of cheap stocks surge hundreds of percentage points thanks to some random catalyst. While the moves might not last more than a few hours or several days, the point is people are making money with penny stocks. So, where do you look to find names for your watch list? Today we’ll take a closer look at a few hot stocks insiders decided to buy this year.
Penny Stocks TL;DR 30-Second Summary
- Penny stocks can be well worth the reward if you know how to trade them.
- Insider trading is something retail investors look for in order to gauge sentiment.
- If management buys or sells stock it isn’t automatically a reason to do the same. However it can have an impact on market sentiment.
- Today we look at a few penny stocks to buy according to insiders right now.
The critical thing to remember about (legal) insider trading is that it isn’t an immediate signal to copy-trade. Some insiders buy or sell based on predetermined investing plans. Other insiders, meanwhile, may purchase “large positions” based on one person’s opinion, but in the grand scheme of things, it may not be that significant to the insider, personally. Either way, when insiders begin making moves, market sentiment tends to follow. Today we look at a handful of penny stocks insiders are buying in 2022.
Penny Stocks To Buy [according to insiders]
- Oragenics Inc. (NYSE: OGEN)
- Flotek Industries Inc. (NYSE: FTK)
- BioRestorative Therapies (NASDAQ: BRTX)
- ClearOne (NASDAQ: CLRO)
1. Oragenics Inc. (NYSE: OGEN)
Shares of Oragenics kicked off the new year in style with a big move to $0.56. This came after a year-end sell-off took the penny stock back to lows in the mid-40 cent range. The biotech company reported news that it extended a licensing deal with the National Research Council of Canada in developing an intranasal vaccine for the omicron variant. The company explained that the Council’s technologies would help speed up the evaluation process for the candidate in preclinical and clinical studies.
The company recently announced results from a study evaluating immunogenicity and viral load reduction impact of its SARS-CoV-2 vaccine candidate in a challenge study. This provided preclinical data for both intranasal and intramuscular administrated formulations. Frederick W. Telling, Ph.D., Executive Chairman of Oragenics, explained in a December PR that, “…We plan to focus on the intranasal delivery route for the Terra CoV-2 vaccine due to the relative lack of competition and anticipated advantages of intranasal vaccine delivery…e findings from this second preclinical study will be a part of our Investigational New Drug filing to the U.S. Food and Drug Administration, expected to be made in the second quarter of 2022.”
With more near-term potential catalysts to look for, OGEN stock has gained some early attention. In addition, insiders are picking up stock at these lower levels. Director Robert Koski filed a Form 4 this month showing a recent purchase of 1 million shares of OGEN stock. The shares were purchased at average prices between $0.4498 and $0.474.
2. Flotek Industries Inc. (NYSE: FTK)
Flotek has been on our radar ever since the company announced an unsolicited buyout deal last year. The specifics are still vague. However, the company brought on a consulting firm to help. Flotek received an offer for a potential transaction for all or part of the company just before New Year’s Eve 2021.
With the move toward Environmental, Social, and Governance initiatives in 2021 and 2022, FTK stock has gained some interest. Its model hinges on reducing the environmental impact of energy on different ecosystems. Through its chemistry, the company provides cleaning and sanitizing products. Flotek also offers real-time data analytics to customers in the energy industry to analyze ESG processes.
This year, insider buying is already beginning. CEO John Gibson Jr. purchased a few thousand shares of FTK stock on the last day of 2021. This was reported on January 4th and seems to have become a focal point for some traders in the stock market today. As we wait for further details on this proposed transaction, speculative momentum remains a driving force.
3. BioRestorative Therapies (NASDAQ: BRTX)
BioRestorative is still licking its wounds from 2021, but some insider activity may have slightly remedied that issue for now. The company did a reverse split and coinciding uplist to the Nasdaq exchange last quarter. Shares ended up reaching highs of nearly $15 but have since tumbled back below the penny stock threshold.
The company’s IPO and funds raised with it were done to enhance its IP position further and strengthen it financially. BioRestorative is building a portfolio of cell and tissue protocols involving adult stem cells. Its two core programs relate to l lumbosacral disc disorders and metabolic disorders, including obesity visits BRTX-100 and ThermoStem platforms, respectively.
A recent grant award for use evaluating BRTX-100 has brought a bit more optimism back into the market. Ahead of the company’s January HC Wainwright BioConnect Conference presentations, insiders have also begun buying shares. Earlier this week, CEO Lance Alstodt picked up a few thousand shares of BRTX stock at an average price of $3.85. This brought his total direct holdings to over 161,000 shares.
4. ClearOne (NASDAQ: CLRO)
Like BioRestorative, ClearOne has made unsuccessful attempts at recapturing what it lost in late-2021. Initially, the company came under fire after selling pressure slashed the stock’s price in October. CLRO stock dropped from over $2 to under $1.50 when all was said and done. An earnings miss in its Q3 results added to the selling pressure.
Fast-forward a bit, and ClearOne has engaged the likes of DISH Network and Rochester Institute of Technology Dubai. ClearOne was also recently granted two U.S. Patents #11,190,378 ‘Sending information signals on a differential signal pair’ and #11,188,133 ‘System for transmitting power to a remote PoE subsystem by forwarding PD input voltage.’
This week the company also announced the launch of its DIALOG® 10 USB. According to the company, this is “the industry’s only single-channel wireless microphone system offering professional-quality audio with USB connectivity.”
As the world remains in limbo from the lasting impact of the virus, virtual solutions are necessary. ClearOne specializes in conferencing and network streaming solutions, and following the DIALOG 10 launch, it looks like insiders may be growing optimistic in 2022. This week, Edward Bagley, a 10% owner of ClearOne, reported the purchase of over 1.5 million shares of CLRO stock at an average price of $1.30. This brought his total holdings to more than 10 million shares.
Final Thoughts On Insider Trading
When it comes to (legal) insider trading, people love to follow the money. It can ignite sentiment in the stock market and either give reassurance or fear depending on what trades were made. It’s important to remember that no matter what management may be doing, you’re the person pulling the trigger. Make sure you’ve got plenty of research done before deciding to enter any trade, insider trading or not.
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