When you think about penny stocks to buy, who comes to mind first? In most cases, the “Ape” community has represented the face of the retail trader. A “rag tag” bunch of risk-takers looking to leverage “main street” money in exchange for “Wall Street” gains. While most of those buying penny stocks are mom-and-pop investors, many others still participate—hedge funds, money managers, and, yes, even politicians.
Earlier this year, we discussed several penny stocks that House and Senate members were scooping up. Here are just a few articles discussing the trend:
- Top Penny Stocks To Buy According To Government Officials & Insiders
- Penny Stocks, Pelosi, & 3 Government Reps Buying Cheap Stocks Now
- Is The US Government Investing In Penny Stocks? $700M Could Say Yes
Even some of the most prominent hedge fund managers are taking a stab at stocks under $5. The stock market crash of 2022 has helped push many stocks to some of their lowest prices in recent history. Peter Lynch, David Einhorn, Steve Cohen, and Ray Dalio are a few of the more prominent names buying penny stocks this year. For those who’ve read our articles over the last few years, you’ll also remember an update where we discussed “The Big Short” inspiration, Michael Burry, and his small stake in a beaten-down penny stock, GameStop (NYSE: GME).
Read More On Michael Burry’s Bet On GME Stock At Penny Stock Prices:
- Penny Stocks To Buy Or Sell In September 2019: GameStop (GME)
- 3 Penny Stocks Catching Investors’ Attention This Week
Are Penny Stocks Worth It?
Unlike the popular opinion that penny stocks aren’t worth the risk, apparently, big money has placed plenty of faith in a few of these names. Even the outspoken and sometimes controversial Cathie Wood and her Ark Funds – most notably Ark Innovation ETF (NYSEARCA: ARKK) – have plenty of exposure to high-tech companies trading for pennies.
See:
- 10 Top Penny Stocks Cathie Wood ARK Invest Owns, Time To Buy?
- 7 Penny Stocks To Buy Based On Cathie Wood’s ARK Invest Holdings
- 3 Penny Stocks Cathie Wood’s ARK Invest Bought In 2021, Will You?
So what is the point of all of this? Putting it plainly, penny stocks have become more than just a gamble. For some, including money managers and politicians, they’re looked upon as potentially viable investments. Risk is high, of course, but stocks under $5 have taken a place at the table for at least a portion of their portfolios. Today we look at the latest figurehead to take a stab at this market niche, none other than Texas House Republican Pete Sessions.
Penny Stocks To Buy Based On Pete Sessions’ Trades?
Whenever you look at insider buying, government buying, or buying done by hedge funds, it’s essential to read the fine print. A Form 4, for example, will reveal insider transactions, including detailed notes and even the days & prices of the stocks bought or sold. Insiders usually have less than a week from the most recent purchase or sale to report a Form 4. However, the timing is much looser when it comes to government trading. In some cases, you could be looking at weeks or months before a trade is disclosed.
Republican House member Pete Sessions seems to be on the ball when reporting his stock market activity. A recent Periodic Transaction Report details the purchases of Sessions’ spouse, making two trades this month. One of these trades was a purchase of NVIDIA Corporation (NASDAQ: NVDA) shares for $1,001 – $15,000. The other trade, however, was the purchase of a penny stock.
DigitalBridge Group Inc. (NASDAQ: DBRG) was the target, and Pete Sessions’ spouse reported a purchase for $1,001 – $15,000. Most of you know what NVIDIA does, but what about DigitalBridge Group?
What Does DigitalBridge Group Do?
DigitalBridge Group is an infrastructure investment firm with an ecosystem of cell towers, data centers, edge infrastructure, and even fiber. The company’s team manages $47 billion in portfolio assets on behalf of its partners and shareholders.
Like most companies in the stock market this year, DBRG stock has faced strong bearish sentiment and is down more than 40% year to date. However, this latest government official-related buy could have helped bring some added attention to the company.
[Read More] Penny Stocks To Buy Now? 7 Hot Stocks Under $1 To Watch
A $200 million share repurchase program and a $1.2 billion investment into one of its portfolio companies, DataBank, by Swiss Life Asset Management are recent catalysts to make a note of. The company also expects to effectuate a reverse stock split this quarter. While no official date was released, DigitalBridge has explained that it will inform the public within ten days of the event.
What To Watch With DBRG Stock
Other than these more recent catalysts, DigitalBridge is set for another earnings release. The company plans on presenting its latest performance from the second quarter in early August. Investors will likely look for DigitalBridge to turn things around from its first quarter. While the company reported that it was “off to a great start to the year,” according to CEO Marc Ganzi, it missed sales estimates by a slight margin. Earnings per share from continuing operations was also a loss. The figure came in at -$0.30 per share.
Nevertheless, the company remains optimistic. Ganzi said in DigitalBridge’s Q1 update, “We’ve announced two important strategic transactions that accelerate and scale our high-performance investment management platform, putting us in a strong position to outperform our financial targets. We also made great progress with new core, credit, and ventures investments that advance our progress towards building a full-stack digital infrastructure investor.”
Penny Stocks To Buy According To Government Officials
DigitalBridge is one of many companies that have turned the heads of prominent people in the stock market. Today shares tread water near the upper limit of the penny stock range. With upcoming earnings and momentum from the first half of the year, it will be interesting to see if the latest Pete Sessions trade was well-timed.
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