We discussed this trend on Thursday thanks to the attention that was sparked by shares of ISPO stock. Low float penny stocks are gaining even more attention in the stock market today thanks to the massive breakout potential that they can hold. In looking at the ISPO example, the small-cap stock was trading around $14 per share on Thursday morning. It would go on to rally as high as $108 even in the face of a market sell-off, thanks to Russia-Ukraine concerns.
One of the core catalysts had little to do with that company’s latest headlines and more to do with the share structure & market activity. When you’re looking at low float penny stocks, you’re looking at some of the most volatile assets in the market. That’s because a lower float means fewer shares in the public hands, and as we know, simple economics tells us that higher demand and lower supply can mean higher prices.
That’s exactly what happened on Thursday. Today we look at four more low float penny stocks to watch right now, as many in the article: 4 Low Float Penny Stocks To Watch After ISPO Stock Explodes have seen a similar spark in volatility. At the end of the article, we’ll provide you with the complete list of penny stocks so that you can review them for yourself and decide if they should join your watch list or be avoided entirely.
Low Float Penny Stocks To Buy [or avoid]
- vTv Therapeutics Inc. (NASDAQ: VTVT)
- Hookipa Pharma (NASDAQ: HOOK)
- Datasea Inc. (NASDAQ: DTSS)
- Revelation Biosciences Inc. (NASDAQ: REVB)
Penny Stocks To Buy [or avoid] 1. vTv Therapeutics Inc. (NASDAQ: VTVT)
I can’t stress enough that when looking at low float penny stocks, you’ve got to keep volatility in mind. Just as quickly as these types of stocks can climb, they can also fall. In many cases, when you’re looking at lower-priced stocks, the market is already wild as it is. vTv Therapeutics is an example of this phenomenon. Over the last year, shares have been in a perpetual downtrend. However, there have been many days that VTVT stock experienced explosive moves.
Finishing out this week, the penny stock has popped over 15% during the first hour of trading, thanks to an analyst update. Cantor Fitzgerald picked up coverage on the company giving it an Overweight rating. The firm also issued a $5 price target suggesting a significant upside on the company. Just to put it into perspective, shares of VTVT stock are trading around $0.80. A move to $5 would mean a jump of more than 500%. Whether or not that becomes a reality is to be seen.
However, recent updates from the company put a few things in focus. The foremost is the company’s lead program, TTP399, for targeting diabetes patients and reducing hypoglycemic episodes. vTv is expecting to conduct pivotal global trials this year. So far, TTP399 has been tested on nearly 600 patients with “no evidence of diabetic ketoacidosis,” according to the company.
2. Hookipa Pharma (NASDAQ: HOOK)
Shares of Hookipa have been on the watch list for many traders this week. The company specializes in immunotherapeutic development based on a proprietary “arenavirus” platform. Some of the recent excitement seems to have stemmed from news earlier this week about an amended collaboration and license agreement with Gilead to develop immunotherapies against HIV.
Back in 2018, Gilead exclusively licensed the rights to Hookipa’s arenaviral platform for HIV and hepatitis B immunotherapy development.
“We are pleased to enter into this amended agreement with Gilead which includes provisions that we believe benefit both parties, and we hope ultimately the HIV community…Gilead is helping to advance our novel arenaviral platform technology, which has the potential to complement Gilead’s overall research strategies for cures of HIV and HBV.”Joern Aldag, Chief Executive Officer at HOOKIPA
Given this milestone, analysts also took it as a bullish sign for HOOK stock. SVB Leerink boosted its $3 target to $4 while maintaining an Outperform rating on the stock.
3. Datasea Inc. (NASDAQ: DTSS)
Digital technology company, Datasea has experienced a strong month of February so far. Since the start of the month, DTSS stock has climbed from around $1.15 to highs this week of $2.18 so far. A recent earnings update seems to have helped give things a boost even further heading into the second half of the month. Datasea reported second-quarter fiscal 2022 results and provided a business update late last week.
“Datasea had a solid quarter as our 5G messaging business started to demonstrate its great value and capability to improve the Company’s competitiveness and create new sources of revenue and profits. As one of the first movers in this industry, Datasea has been a leading 5G messaging service provider in China. We will continue to leverage our advantages of entering the market early to build brand recognition and customer loyalty,” said Zhixin Liu, CEO of Datasea.
With 5G messaging taking off in a big way, DTSS stock has benefited during recent sessions. According to the earnings update, Datasea recorded a 900% jump during the quarter compared to its previous quarter.
4. Revelation Biosciences Inc. (NASDAQ: REVB)
SPAC merger stocks have underperformed the stock market since the phenomenon captivated traders. Revelation Biosciences seems to have gotten trapped in that trend as well. Following its merger with Petra Acquisition, shares of REVB stock dropped from over $10 to under $2 this year.
The company has gone public and raised additional funds to develop its treatment pipeline. In particular, its REVTx-99 has already shown “significant” viral load decreases in 3 independent in vitro assay models of SARS-CoV-2 infections. The company has also begun doing the first round of patients enrolled in its Phase 2b viral challenge study (RVL-VRL01) to monitor the effectiveness of an intranasal version of REVTx-99 for preventing H3N2 influenza. “With respiratory viral infections like influenza, COVID-19, and its emerging variants, there is a huge need for new therapies,” said James Rolke, Chief Executive Officer of Revelation, in a January update.
Analysts at Roth Capital appear to believe in the potential of the company. This week, the firm initiated coverage on REVB stock with a Buy rating. Analysts also gave a $12 target suggesting its expected upside of more than 580% in light of current trading levels around $1.75. Again, whether or not this comes to fruition is to be seen. But with fewer than 15 million shares outstanding, REVB has gained some attention thanks to the low float stock trend this week.
Low Float Penny Stocks To Watch
These are just a handful of low-float penny stocks gaining momentum in the stock market today. Given the high-risk thanks to higher volatility, it’s important to have a roadmap laid out and how you plan to trade before stepping into the ring with these wild stocks. This is a continuation of our article 4 Low Float Penny Stocks To Watch After ISPO Stock Explodes. Below is the complete list: