Penny stocks can be your greatest asset or worst enemy, depending on how you trade them. Their low prices lend themselves to considerable gain potential, and I’m not just talking 5 or 10%. Almost daily, we see stocks under $5 explode by 50% or more…yes, 50% or more. But with that gain potential also comes a much higher risk. As quickly and dramatically as they climb, they can completely fall apart.
If you’re looking for penny stocks to buy, you’ve got your pick of strategies. Some traders will look for momentum, while others will focus on data. Today we look at the latter and peel back the layers on 10 stocks with recent insider buying in June. This “follow the money” trading style is a speculation technique used by some investors to “bet” on a company based on what its management and insiders are doing. While this isn’t foolproof, it is a way to gauge the sentiment of those closest to a company.
This article is the second half of our list of 10 top penny stocks with insider buying in June. We will give some basic info on the companies, but more importantly, we’ll discuss who’s buying and how much they’re purchasing so you can decide if they’re worth investigating further.
For the first half and full list of penny stocks with insider buying, check out: 10 Top Penny Stocks To Buy In June According To These Insiders Part 1
10 Penny Stocks To Buy [According To Insiders] Part 2
It’s important to remember that insider buying doesn’t guarantee a “good” investment. However, as discussed above, it could give a good starting point for research based on data you might find interesting.
- Dakota Gold Corp. (NYSEAMERICAN: DC)
- CymaBay Therapeutics Inc. (NASDAQ: CBAY)
- Nerdy Inc. (NYSE: NRDY)
- Concert Pharmaceuticals Inc. (NASDAQ: CNCE)
- Helbiz Inc. (NASDAQ: HLBZ)
Dakota Gold Corp. (NYSEAMERICAN: DC)
With inflation and rate risk in the immediate view, safe-haven stocks and investments have become a more significant focus. Gold and other precious metals are part of this group, and Dakota Gold is one of the names insiders are scooping up.
Earlier this year, the company announced the addition of a second drill to a Phase 1 exploration program at its Richmond Hill Gold Project. According to the company, the Richmond Hill Property has produced over 170,000 ounces of gold that ceased production in the early 1990s. Now the company sees the potential to explore and expand this location.
DC Stock Insider Buying
This month, both management and more prominent investors are picking up shares of DC stock. For example, President and CEO Jonathan Awde snagged 20,000 on June 3 at an average price of $3.38. Meanwhile, Director and 10% owner Robert Quartermain purchased 10,000 earlier this month at an average price of $3.2425. Quartermain’s total position is over 7 million shares.
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CymaBay Therapeutics Inc. (NASDAQ: CBAY)
Biotech hasn’t been as hot as it has been in previous years. However, there are plenty of pockets of bullishness in small-cap and micro-cap stocks. CymaBay is one of the names on this list of penny stocks that has continued a steady, multi-week move back up from its May lows.
The company develops treatment candidates targeting liver and other chronic diseases. In particular, its Seladelpar platform has been a recent focus. CymaBay presented favorable data during Digestive Disease Week® (DDW) at the end of May, which has recently helped give things a boost in the market.
CBAY Stock Insider Buying
This month, CEO Sujal Shah upped the ante by purchasing shares of CBAY stock. On June 6th, Shah grabbed 51,301 shares at an average price of $1.95.
Nerdy Inc. (NYSE: NRDY)
Online learning technology company Nerdy pulled back thanks to mixed responses to its latest earnings results. What was interesting was that Nerdy announced record first-quarter 2022 figures. Revenue came in at $46.9 million, beating analyst estimates of $46.7 million. However, the company’s outlook on Q2 revenue was lower than what was reported in Q1 ($37 million – $40 million). Needless to say, trading action has continued picking up, and so has insider buying of the penny stock.
NRDY Stock Insider Buying
CEO and 10% owner Charles Cohn has added to his position in NRDY stock this month. In June, Cohn picked up over 500,000 shares at average prices ranging between $2.640 and $2.970. For those keeping scores at home, on the low end of the range, that’s a 7-figure purchase. These trades were made through Rarefied Air Capital LLC.
Concert Pharmaceuticals Inc. (NASDAQ: CNCE)
Concert Pharmaceuticals Inc. has been on fire since mid-May. The company has continued reaching milestones. It recently announced the publication of safety and efficacy data from its Phase 2 clinical trial for CTP-543 in the Journal of the American Academy of Dermatology (JAAD).
CTP-543 is the company’s treatment candidate being evaluated to treat adults with moderate to severe alopecia areata. The publication reported “clinically meaningful and statistically significant” scalp hair regrowth after 24 weeks of treatment. The company expects topline data from its THRIVE-AA2 trial next quarter.
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CNCE Stock Insider Buying
This month, numerous directors took a bullish stance in purchasing shares of CNCE stock. Richard Aldrich, Thomas Auchincloss, and Christi van Heek bought over 220,000 shares collectively. This was from participating in a recent company public offering. Aldrich accounted for the bulk of that figure, buying 210,526 shares at an average price of $4.75.
Helbiz Inc. (NASDAQ: HLBZ)
Helbiz is a “micro-mobility company” that has gained interest recently, thanks to growing attention on the EV industry, specifically, E-Bikes. The company also launched a new line of e-scooters as a trial in the Asia Pacific region.
HLBZ Stock Insider Buying
CEO Salvatore Palella has been the main insider making frequent Form 4 filings over the last few months. In June, Palella reported purchasing 2,044,676 shares of HLBZ stock at an average price of $0.99. Once again, for those keeping score at home, that buy was worth over $2 million.
Stocks With Insider Buying
When it comes to stocks with insider buying, you’re most likely looking for data to analyze. The usual reason for looking at this type of activity is to gauge how company insiders feel about the potential of their businesses. Granted, buying doesn’t always mean a stock will jump, and selling doesn’t mean a drop is coming. At the very least, however, it could give you some insight into where certain insiders are placing their bets right now.
10 Penny Stocks To Buy [According To Insiders] Full List
- Standard BioTools Inc. (NASDAQ: LAB)
- Troika Media Group (NASDAQ: TRKA)
- Sunshine Biopharma Inc. (NASDAQ: SBFM)
- ReWalk Robotics Ltd. (NASDAQ: RWLK)
- CytoSorbents Corporation (NASDAQ: CTSO)
- Dakota Gold Corp. (NYSEAMERICAN: DC)
- CymaBay Therapeutics Inc. (NASDAQ: CBAY)
- Nerdy Inc. (NYSE: NRDY)
- Concert Pharmaceuticals Inc. (NASDAQ: CNCE)
- Helbiz Inc. (NASDAQ: HLBZ)
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