Well, it’s happening again. A flurry of penny stocks seeing insider buying. With the stock market down again, some are apparently buying the dip in shares of their own companies. According to investors and traders, the main attraction has everything to do with the sentiment that this is creating. Today’s article dives into a handful of penny stocks to buy according to recent insider moves. Some of these trades aren’t small either. One company has seen more than $20 million in buying this month alone.
Earlier this week we also put together a 2-part update on 10 top penny stocks with insider trading that you can access below:
- 10 Top Penny Stocks To Buy In June According To These Insiders Part 1
- 10 Top Penny Stocks To Buy In June According To These Insiders Part 2
Hot Penny Stocks To Watch Right Now
- Buzzfeed Inc. (NASDAQ: BZFD)
- Phx Minerals Inc. (NYSE: PHX)
- Katapult Holdings Inc. (NASDAQ: KPLT)
- Bark Inc. (NYSE: BARK)
- Nextdoor Holdings Inc. (NYSE: KIND)
Penny Stocks To Watch 1. Buzzfeed Inc. (NASDAQ: BZFD)
You’ve probably become familiar with Buzzfeed if you’re frequently online. The media company went public late last year. Though you can’t really discuss penny stocks on their forums, they’re certainly a hot topic of discussion among retail traders looking for stocks under $5. Thanks to a slew of investors whose shares unlocked from the post-IPO waiting period, the millennial-focused online entertainment company dropped in heavy selling earlier this week.
BZFD Stock Insider Buying
Nevertheless, it appears that some insiders remain bullish even with BZFD stock hitting fresh 52-week lows on June 8th. In particular, Directors Gregory Coleman and Adam Rothstein picked up a collective 175,000 shares at average prices between $2.23 and $2.90. Even on the low end of that average, the BZFD stock insider buys equate to more than $390,000.
2. Phx Minerals Inc. (NYSE: PHX)
In stark contrast to BZFD, the PHX stock price has been flying high this year. The natural gas & oil mineral company’s shares marked new 52-week highs on June 8th. The company owns roughly 75,000 net leased mineral acres in the U.S. With rising demand for oil and natural gas and prices inching higher, most energy stocks are heating up in the stock market this month.
PHX Stock Insider Buying
The trend seems to have also attracted the interest of Phx insiders. In particular. a portfolio of investment entities, including SRP Capital Advisors, purchased over 81,000 shares of PHX stock. With an average price of $4.23, the transaction value comes in at more than $340,000.
3. Katapult Holdings Inc. (NASDAQ: KPLT)
ECommerce technology company Katapult Holdings focuses on consumers and point of sale lease purchase options of durable goods. Despite the negative trend in KPLT stock, the company has made progress as far as growth is concerned. Earlier this quarter, Katapult released Q1 results showing an EPS and sales beat. Furthermore, Orlando Zayas, CEO of Katapult, explained, “While current macroeconomic headwinds continued to weigh on our consumers and retailers this quarter, we are optimistic that the strategic investments we have been making will position us to capture market share in this large addressable market. We look forward to incremental growth opportunities as these investments come to fruition in the mid to long term.”
Katapult posted revenue of $59.9 million and an EPS loss of 6 cents. Despite this beat, results were lower than the prior year’s quarter. But that doesn’t seem to have weighed on the optimism of certain company insiders.
KPLT Stock Insider Buying
Director Brian Hirsch and CEO Orlando Zayas participated in bullish buying this month. Together, they grabbed more than 278,000 shares between average prices of $1.389 and $1.57.
4. Bark Inc. (NYSE: BARK)
We’ve discussed household name penny stocks in the past, with Bark Inc. remaining on the list. The company offers themed toy and treat subscription services for pets via lines including BarkBox, Bark Eats, and Bark Bright. The company went public in a SPAC merger with Northern Star Acquisition Corp., in a deal valued at $1.6 billion. Since the public debut, however, BARK stock has been a bit chewier than some investors might like.
BARK Stock Insider Buying
Although earnings were nothing to bark about, some insiders are ignoring the “ruff” edges and turning bullish on BARK. All jokes aside, the company’s Directors Werdelin & McGinty and the Executive Chairman purchased a total of 64,939 shares in separate transactions at varying prices. The highest price paid per BARK share was $1.82, with the lowest price being $1.65.
5. Nextdoor Holdings Inc. (NYSE: KIND)
Finally, Nextdoor Holdings rounds out this list of penny stocks thanks to mega buying from insiders in June. The company is part-social-network and part-community-engagement-platform. It has created a way for neighbors to get trusted info, give & receive help, and build real-world connections via the Nextdoor app. Unfortunately, the market hasn’t been as neighborly as some might like. Shares are trading significantly lower than they were last year. Regardless, it hasn’t stopped insiders from breaking out their checkbooks to buy shares.
KIND Stock Insider Buying
Directors Jason Pressman and David Sze are in focus. The shares were indirectly purchased through their respective affiliated entities in both cases. Pressman’s purchase was for 151,088 shares of KIND stock at an average price of $3.2993, while Sze’s related entities snagged 5,837,072 at prices ranging from $3.1281 to $3.5536. For those keeping track at home, Sze’s purchase is good for roughly $19.43 million alone.
Penny Stocks To Buy
Insider trading may or may not factor into your strategy. However, it is tough to ignore the amount of buying activity that has gone on in some of these penny stocks. If any of them are on your watch list right now, leave a comment below and let us know what you’re looking for beyond insider activity.