Want to find the best penny stocks to buy now? Many investors and traders use the “follow the money” approach to trading. They’re hunting for SEC filings that show management or institutions taking positions or adding to their current positions. It sounds taboo, but insider trading isn’t as bad as some paint it. It refers to trades made by insiders of a company, and nothing is technically illegal if the transaction wasn’t made based on non-public info. Then again, I’m no legal professional either. Regardless, this “follow the money” approach to trading is one way to find stocks to add to your watch list. Today we look at 5 penny stocks that insiders flocked to in March.
Penny Stocks To Buy [according to insiders]
- Helbiz Inc. (NASDAQ: HLBZ)
- NexImmune Inc. (NASDAQ: NEXI)
- Gevo Inc. (NASDAQ: GEVO)
- Hemisphere Media Group Inc. (NASDAQ: HMTV)
- RLX Technology Inc. (NYSE: RLX)
Best Penny Stocks To Buy
Are “follow the money stocks” the best to buy right now? A lot of that has to do with the companies themselves. What makes “good penny stocks to buy” for one trader may not present the best opportunities for others. But if you have a clear strategy in place and understand how to trade, making money with penny stocks is a great way to take advantage of the volatility in the stock market today. Let’s look at 5 “follow the money stocks” to buy according to insiders this month.
1. Helbiz Inc. (NASDAQ: HLBZ)
Micro-mobility company, Helbiz has gained momentum recently, thanks to growing interest in the EV industry. While it doesn’t compete with automakers like Tesla (NASDAQ: TSLA), it has carved out a niche in a different “E” market, which is E-Bikes. Earlier this month, Helbiz inked a deal with Belgrade, Serbia, to deploy at least 1,000 e-bikes and 150 parking terminals throughout the city in a 15-year exclusive vendor agreement.
HLBZ Insider Buying
That isn’t the only thing that has gotten the market excited recently. CEO and 10% owner Salvatore Palella has been picking up shares of HLBZ stock. In the latest filing from March 29, Palella reported purchasing 350,000 shares at an average price of $2.86, making this one of the most significant insider purchases among the names on this list of penny stocks.
2. NexImmune Inc. (NASDAQ: NEXI)
Shares of biotech penny stock, NexImmune, have climbed in March. One of the most bullish catalysts in the last few weeks came after the company announced a strategic partnership with Zephyr AI to discover targets for new T-cell therapies in oncology. Zephyr offers artificial intelligence and algorithmic technology that pairs with NexImmunes Artificial Immune Modulation nanoparticle technology.
NEXI Insider Buying
Also adding to the excitement is insider buying this month. In this case, Directors Sol J Barer and Grand Verstandig have picked up shares in March. Between the two of them, more than 290,000 shares were bought at average prices ranging from $2.107 and $4.14.
3. Gevo Inc. (NASDAQ: GEVO)
Energy penny stocks have been active over the last few weeks. Thanks to growing uncertainty stemming from the Russia-Ukraine conflict, international sanctions have pressured energy prices. In Gevo’s case, the company specializes in sustainable fuels. Its recent contract win with Delta Airlines (NYSE: DAL) could see the company supplying up to 75 million gallons of sustainable aviation fuel per year for the next seven years. Gevo estimates this agreement could generate $2.8 billion in revenue over the term.
GEVO Insider Buying
This week, Director Gary Mize is making waves on the insider trading front. The interesting part is that he both bought and sold shares. The sale was made at an average of $4.4746 for 101,434 shares. Footnotes show the seller sold the shares to pay taxes resulting from the vesting of restricted common stock granted by Gevo in connection to Mize’s Directorship. Meanwhile, in the same Form, Miez reported purchasing 35,339 shares at an average price of $4.48.
4. Hemisphere Media Group Inc. (NASDAQ: HMTV)
Hemisphere is one of the lower volume penny stocks on this list and sits around 52-week lows. The media company recently reported a sales beat for Q4 2021 while also giving a robust outlook for 2022. President and Chief Executive Officer of Hemisphere, Alan Sokol, said, “The fuboTV launch, as well as the impending YouTube TV launch, should drive subscriber growth and significantly offset any subscriber declines from traditional MVPDs…With our expanded production pipeline and tens of millions of potential subscribers, we are confident in driving significant subscriber growth in 2022 and remain on track for achieving our long-term target of 2.5 to 3.0 million subscribers by 2025.”
HMTV Insider Buying
Institutional buying is at the center of this month’s insider activity. 10% owner, Edenbrook Capital, is the firm in question. Since March 1st, purchases were made totaling 75,000 shares. The lowest purchase price for these purchases was $4.967.
5. RLX Technology Inc. (NYSE: RLX)
E-vapor company RLX Technology is also coming into the end of the month on the heels of recent earnings. The company reported net revenue growth of 17.7% over Q4 2020, with gross margins of 40.2%. In comments, CFO Chao Lu also mentioned, “As we progress through 2022, we will strive to strengthen our core capabilities, bolster our market-leading position, and reinforce our commitment to achieve sustainable growth and generate long-term value for our shareholders.”
RLX Insider Buying
Like HMTV, RLX stock is on the radar thanks to institutional buying. A Schedule 13G was filed this week by Deep Technology Linkage Fund, showing an 8.95% stake in RLX stock.
Are “Follow The Money Stocks” Worth It?
This is an excellent question to ask yourself while you make your list of penny stocks. If you’re searching for stocks with insider buying, make sure to understand that just because insiders are trading, it isn’t a guarantee it translates into a significant move in the stock market today. You’ve also got to understand that what might appear like a large dollar trade to you might not be that big of a deal for certain insiders or institutions. In this case, additional research is never a bad idea, especially if you’re looking for ways to make money with penny stocks.