Do you “follow the money” before you put your list of penny stocks together? What I mean by this is, do you look for inflows and outflows of capital from big money? Insider activity has become a gauge of sentiment in the stock market today.
No matter if you’re talking about penny stocks or stocks trading above $100 when insiders make big moves, the market pays attention. Today, we look at four penny stocks to buy according to recent insider trades.
Whether or not they join your watch list should depend on much more than which managers, directors, or large holders are buying (or selling) shares. We’ll discuss additional trading strategies later in the article.
Penny Stocks To Buy According To Insiders
- Crexendo Inc. (NASDAQ: CXDO)
- Martin Midstream Partners (NASDAQ: MMLP)
- U.S. Xpress Enterprises Inc. (NYSE: USX)
- Conduent Incorporated (NASDAQ: CNDT)
Penny Stocks To Buy 1. Crexendo Inc. (NASDAQ: CXDO)
First, on this list of penny stocks, Crexendo Inc. is one of the low float names gaining interest from insiders. The communications service company provides several platforms and solutions for enterprise-grade collaboration at scale. Its Unified Communications as. Service (UCaaS) and Call Center as a Service (CCaaS) have helped give the company a position within the industry. Earlier this year, Crexendo was awarded an Innovation Award by TMC Labs for its VIP Platform designed for its application in the remote work sector.
Insiders Buying CXDO Stock Right Now
February has been a very active month for insiders. One of the largest purchasers in February is company CEO Steven G. Mihaylo. From February 1st through the 18th, Mihaylo purchased thousands of shares, bringing his direct ownership size to 10.545 million as of the most recent Form 4 filing.
Something to note, however, is that these purchases were made “pursuant to a plan intended to comply with Rule 10b5-1(c), previously entered into on December 15, 2021, at which time Mr. Mihaylo was not aware of material nonpublic information.” This means he had already engaged with a predetermined purchase plan. Nevertheless, it has brought some attention to insider activity for CXDO stock recently.
2. Martin Midstream Partners (NASDAQ: MMLP)
Energy stocks are red hot this month. Thanks to multiple tailwinds, prices for oil and gas have skyrocketed, with the entire energy supply chain experiencing volatility. Martin Midstream has positioned itself as a services provider, marketer, manufacturer, and transportation services provider of petroleum products, natural gas, and other energy liquids.
The company is focusing on its refinery services asset base this year. Martin Midstream recently discussed this initiative in a February update on Q4 and full-year 2021 results.
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership explained, “The rebound in the global economy and strengthening commodity prices resulted in solid annual results across all segments, and particularly in our fertilizer, land transportation, and butane optimization businesses…As we focus on 2022, I remain confident in our diversified refinery services asset base which has performed well through the last two years of economic instability.”
Insiders Buying MMLP Stock Right Now
February hasn’t been as busy a month for MMLP stock insiders as CXDO. However, that doesn’t mean there aren’t transactions to follow. Multiple insiders have purchased shares beginning on the 7th, with the most significant trades being made by Director Ruben Martin.
3. U.S. Xpress Enterprises Inc. (NYSE: USX)
Earlier this month, we discussed U.S. Xpress on a list of penny stocks with insider buying. It looks like this trend has continued later in February. The company has gained momentum after rebounding from a big dip early on. It specializes in asset-based truckload carrying in the U.S. Its services include over-the-road and brokerage solutions in addition to dedicated fleet services to large shipping companies.
U.S. recently signed a deal with Aurora Innovations (NASDAQ: AUR) to deploy the Aurora Driver in U.S. Xpress operations. The aim is to fine-tune Aurora’s autonomous Driver-as-a-Service product, Aurora Horizon, and improve deployment efficiency at a commercial scale.
Insiders Buying USX Stock Right Now
Recent insider activity saw Max Fuller, Executive Chairman, adding to his growing position. Fuller picked up over 240,000 shares of USX stock at an average price of $4.09 on February 17th.
4. Conduent Incorporated (NASDAQ: CNDT)
This week, workflow automation company Conduent Incorporated has caught attention after a big update involving the Bay Area Toll Authority. The company announced that its global business unit, Conduent Transportation, renewed its contract with the BATA for processing automated tolling transactions at seven state-owned bridges in the Bay Area region. The value of this contract came in at roughly $285 million.
Insiders Buying CNDT Stock Right Now
A few days before this deal was closed, insiders picked up shares at average prices ranging between $4.45 and $4.75. CEO Clifford Skelton and CFO Stephen Wood purchased roughly $100,000 each on February 18th, according to their Form 4 filings.
Penny Stocks To Buy Or Avoid?
Should you buy penny stocks that insiders buy? Ultimately it’s up to you, and it’s essential to think about different reasons for these purchases. Are they planned purchases and sales, or are they open market trades? Is the $100,000 trade a meaningful size to that insider, or is it the equivalent of an average trader’s $100 or $1000 trade?
There are many things to keep in mind when looking for stocks with insider trading. The goal is to make money with penny stocks, and insider activity can be one indicator to include in the broader research process.
If you’re new to trading penny stocks, check out some of these articles below to get you started: