There are many strategies to find the best penny stocks to buy. Some people hunt for chart set-ups and look out for unusual volume. Others prefer to focus on stocks under $1 or over $0.50. Another common trend in trading today is called “following the money,” which focuses on insiders buying up shares. Seeing where “big money” bets are being placed has become somewhat of a new strategy for retail traders, and it isn’t just company management that is being followed either.
We all know that when Nancy Pelosi buys stock in a company, the market takes notice. And while we can’t speak from firsthand experience and insight as to what exactly these transactions mean for specific insiders or big investors, we can observe the general sentiment. It seems that no matter who’s doing the trading, insider buying has been a catalyst for investor sentiment.
The idea behind “following the money” means tracking inflows/outflows among big buyers or insiders. There’s no guarantee that insider buying means stocks will rise or selling will result in a crash. But, it doesn’t hurt to know what company management and affiliates are doing with their own money concerning underlying stocks.
Today we look at some penny stocks that insiders decided to buy in 2022. This is a continuation of our article: 5 Penny Stocks To Buy Now According To Insiders In 2022, and we’ll provide the complete list of penny stocks at the end of this article.
Penny Stocks To Buy [According To Insiders]
Penny Stocks To Buy 1. Eyenovia Inc. (NASDAQ: EYEN)
Eyeonovia is a biotech company developing an ophthalmic pharmaceutical pipeline. Though it hasn’t experienced the best market conditions in 2022, recent news has sparked some added interest in the stock market today.
The company announced that a Type A meeting with the U.S. FDA was complete related to its plan for refining a New Drug Application for its MydCombi treatment. This is Eyenovia’s candidate for in-office pupil dilation. Last year the FDA reclassified the platform as a drug-deice combination product and, as a result of this meeting, requested that Eyenovia do additional device testing related to its Optejet dispenser to deliver the eyedrop medication to the eye. However, to the company’s excitement, no further clinical studies were ordered.
“[N]ow that our product candidates are classified as combination drug/device products, we will be taking advantage of this requested validation work to streamline development activities for our future programs. One such potential benefit is the potential to reference this device validation work in future regulatory applications, reducing the time and expense of repeating these tests for each program,” said Sean Ianchulev, Chief Executive Officer and Chief Medical Officer of Eyenovia.
EYEN Stock Insider Buying
On the heels of this news, one of the company’s 10% owners, Stuart Grant, reported purchasing 36,030 shares of EYEN stock. The buy was done on February 7, 2022, at an average price of $2.97, worth just over $107,000. This latest purchase brought his total share count to more than 4.775 million.
2. MannKind Corp. (NASDAQ: MNKD)
Like Eyenovia, MannKind has felt pressure in the stock market this year. However, recent events have sparked more intrigue at the start of February. MannKind specializes in therapeutic developments targeting endocrine and orphan lung diseases.
In particular, its Afrezza inhaled insulin powder is its first FDA-approved product as a rapid-acting mealtime insulin. A recent collaboration with Thirona Bio has investors looking at MannKind’s MNKD-501 platform to treat pulmonary fibrosis. There’s a current study happening with key results expected next quarter.
MNKD Stock Insider Buying
Right at the beginning of February, several company insiders bought shares of MNKD stock. Officers and Directors bought thousands of shares before the books officially closed in January. In total, more than 8,000 shares through an employee stock purchase plan.
3. LoanDepot Inc. (NYSE: LDI)
It seems to be a trend on this list of penny stocks for companies experiencing a sell-off in early 2022. Regardless, LoanDepot shares have mounted a recovery in February that came with insider activity.
LoanDepot is a consumer lending platform and offers real estate transactions services. Following the latest round of earnings, momentum has come back into the penny stock, though it has been more volatile than in any single direction. LoanDepot reported year-end and fourth-quarter results for 2021, including a sales beat for the quarter. On the flip-side, it missed earnings expectations and reported a drop in Q4 profits by 90%. Based on management comments, the company appears to remain bullish about 2022 regardless of how it closed out last year.
“Conditions like those we enjoyed in 2020 are when loanDepot drives revenue, but the conditions we expect in 2022 present an incredible opportunity for us to capture market share. We are well-positioned to demonstrate the long-term value of loanDepot by remaining focused on our strategic priorities while seizing market share from competitors that are less capable of withstanding these challenging conditions.”loanDepot Founder and CEO Anthony Hsieh.
LDI Stock Insider Buying
Echoing the optimism, insiders are buying up shares of LDI stock. Director Pamela Patenaude and CEO Anthony Hsieh bought over 1.5 million shares collectively in the most recent insider filings. Hsieh, in particular, through his JLSSAA Trust, nabbed the vast majority of this insider move with more than 1.58 million shares bought. Average prices ranged from $3.6361 to $3.793 between them.
Is Insider Buying Worth Following?
Insider trading is a hot topic. But there’s no guarantee that trading like insiders will get you high returns. However, adding this to your research strategy doesn’t hurt and at least will allow you to see if management or large holders are putting their own money on the line. Since this is a continuation of our article: 5 Penny Stocks To Buy Now According To Insiders In 2022, here’s the complete list as promised above:
8 Penny Stocks To Buy Now According To Insiders In 2022
- Oncternal Therapeutics Inc. (NASDAQ:ONCT)
- P3 Health Partners Inc. (NASDAQ:PIII)
- Pixelworks Inc. (NASDAQ:PXLW)
- Performant Financial (NASDAQ:PFMT)
- Vaccinex Inc. (NASDAQ:VCNX)
- Eyenovia Inc. (NASDAQ:EYEN)
- MannKind Corp. (NASDAQ:MNKD)
- LoanDepot Inc. (NYSE:LDI)
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