Penny Stocks To Buy Now? 3 To Watch
Penny stocks are shares of companies trading below $5, but that’s still too expensive for some. This week’s trend of popular stocks under $1 continued on Friday. Earlier in the week, we saw companies like Evofem (NASDAQ:EVFM) and Brickell Biotech (NASDAQ:BBI) surge in price. While their moves were only worth pennies, EVFM stock, BBI, and plenty of others saw incredible percentage gains. This article will look at a handful of penny stocks under $1 that are trending on July 1st.
4 Penny Stocks For Your Sub-$1 Watch List
- Shift Technologies inc. (NASDAQ: SFT)
- Akebia Therapeutics Inc. (NASDAQ: AKBA)
- Quoin Pharmaceuticals Ltd (NASDAQ: QNRX)
- RiceBran Technologies (NASDAQ: RIBT)
Shift Technologies inc. (NASDAQ:SFT)
Last week we discussed Shift Technologies on a list of penny stocks with unusual options volume. The company had gained momentum after announcing a new acquisition. Fair Financial Corp’s listing marketplace technology expanded its reach in the automotive sales industry last quarter, thanks to the new deal.
However, it wasn’t the fundamental developments that traders were following. Technical cues were and are in focus. In particular, SFT stock saw a significant uptick in Call options volume for the nearest expiration, July 15th. At the time, more than 4,600 contracts were traded compared to fewer than 500 shown for Open Interest. As of today, before the market opens, more than 8,100 is shown for Open Interest at the $2.50 strike Call options expiring this month. There’s also mounting O/I for the August 19th Call options throughout the chain. Does this mean SFT stock is a buy?
Why SFT Stock Is Moving
Whether or not SFT is a buy or not is up to you. But I can say that in the stock market today, traders are paying close attention to the short interest in the stock. Right now, the short float percentage in SFT stock sits around 24.8%, according to data from TD Ameritrade. But with a relatively larger float, it will be interesting to see if the penny stock joins the list of short squeeze stocks to watch this month.
[Read More] Hot Penny Stocks to Buy Now? 3 to Watch in July
Akebia Therapeutics Inc. (NASDAQ:AKBA)
Akebia Therapeutics is one of the most popular names in the stock market today. Not only is it one of the stocks under $1, but it’s also a penny stock that just reported a big update.
Akebia develops treatments for kidney disease. Its vadadustat, in particular, is in development for treating anemia associated with chronic kidney disease. The company was collaborating with Otsuka Pharmaceutical for expanded market access until recently.
Why AKBA Stock Is Moving
This week Akebia announced terminating its arrangement with Otsuka, which also came with a settlement payment from its former collaboration partner. How big was the settlement? Otsuka will pay Akebia a fee of $55 million and will relinquish its rights for vadadustat.
John Butler, Chief Executive Officer of Akebia commented that “Otsuka has been a strong partner for many years, and we appreciate their desire to have an efficient transfer of the responsibilities back to Akebia. We plan to continue to pursue approval for vadadustat to make it available to patients in these territories, and we are excited about the potential additional value this brings to Akebia, as we continue to work to build the company into the future.”
Quoin Pharmaceuticals Ltd (NASDAQ:QNRX)
Another biotech penny stock under $1 to watch on Friday is Quoin Pharmaceuticals. Earlier this month, we discussed the company on a list of penny stocks with big news after it announced receipt of FDA acceptance for an Investigational New Drug Application. The application was for Quoin’s QRX003 in treating Netherton Syndrome. Quoin licensed a formulation, Invisicare, from Skinvisible previously.
In addition, QNRX has come into focus for being a low-float penny stock. With a public float of under 10 million, that could quickly put at on the watch list for some.
Why QNRX Stock Is Moving
Friday, more company news is to “blame” for the early momentum in the stock market. Quoin withdrew a registration statement for a potential securities offering. This struck a chord with traders as shares of QNRX stock began surging during early market hours. Earlier this week, we saw a similar phenomenon with Allena Pharmaceuticals (NASDAQ: ALNA). Like Quoin, Allena canceled an at-the-market offering agreement that would’ve issued additional shares and potentially led to dilution. It will be interesting to see how traders react moving forward.
RiceBran Technologies (NASDAQ:RIBT)
RiceBran develops nutritional and functional ingredients made from rice and other grains for use in human food, pet food, and even equine feed applications. While the latest trend has been steadily bullish, the last quarter saw a more significant spike in RIBT stock. This was thanks to news that the company began a capacity expansion of its MGI Grain Incorporated facility. The global supply chain issues and food ingredients shortage has helped boost the penny stock.
Emphasizing this sentiment, RiceBran Chairman Peter Bradley commented in a recent update, “The demand for regionally-sourced ingredients and agricultural products is soaring given the uncertainty of the geopolitical environment and challenges in the global supply chain, and we are able to respond.”
Why RIBT Stock Is Moving
Continued speculation on food supply has helped stoke momentum for RIBT stock. This week, in particular, news came out that Russia will ban rice exports through the end of the year, starting today. Companies with direct involvement in rice ingredient supply have come into focus, with RIBT being one of the penny stocks under $1 to watch right now.