Are you one of those who got into the stock market during the pandemic? Is mobile trading preferred over a desktop or laptop? If you answered yes to either, chances are you’re familiar with the Robinhood Markets (NASDAQ: HOOD) trading application. While there are plenty of drawbacks, it has become one of the preferred platforms for new traders. The easy access to buying and selling stocks has accelerated the platform’s adoption. But things are a bit tricky for those looking for stocks under $5 to buy.
Whether you call them penny stocks or “cheap stocks,” Robinhood restricts access to certain stocks under $5, namely OTC stocks. Anything trading on the Over-The-Counter exchange is inaccessible to users of Robinhood, with some exceptions. Nevertheless, that doesn’t mean all “penny stocks” or stocks under $5 are restricted from trading. The Robinhood platform allows access as long as companies have shares listed on major exchanges like the NASDAQ and New York Stock Exchange.
Since there are millions of monthly active users (over 15 million), it stands to reason that at least a few might be looking for stocks under $5 to add to their watch list. In this article, we’ll dive deeper into a few of these cheap stocks with higher short interest.
Short Squeeze Stocks To Watch
- HTG Molecular Diagnostics (NASDAQ: HTGM)
- Blue Apron Holdings (NYSE: APRN)
- Acutus Medical (NASDAQ: AFIB)
Robinhood Stocks To Watch With High Short Interest
Remember that short interest could be a great asset or the worst thing ever. Much of that outcome depends on how well you handle volatility. High short interest refers to the level of short selling a stock has compared to the public float. In many cases, short interest stocks have the potential to “squeeze,” wherein anyone betting against the company is forced to cover their short. In turn, this type of buying triggers more retail trading momentum, and you end up with epic rallies. These rallies can end quickly, which is why short squeeze stocks are risky. With that in mind, here are a handful of Robinhood stocks under $5 to watch.
HTG Molecular Diagnostics (NASDAQ: HTGM)
Shares of HTG Molecular have been on our watch list for quite some time. We discussed this on a list of penny stocks to watch before July after HTG showcased its HTG EdgeSeq diagnostic technology. The company also presented a keynote featuring one of its customers at the MarketsandMarkets Biomarker and Companion Diagnostics Conference.
In a publication in Frontiers Medicine, its HTG Transcriptome Panel was featured. id John Lubniewski, CEO of HTG, explained his belief that “the growing number of customer publications and presentations made by researchers who have experienced the unique utility of our HTP reflect the transformational impact that this product can have both in oncology and in other areas of scientific research and innovation.”
It was also recently revealed that HTG Molecular Diagnostics will be granted US patent number 11,384,399 titled “METHODS FOR SUBTYPING DIFFUSE LARGE B-CELL LYMPHOMA (AND USING THE RESULTS FOR DIAGNOSIS, PROGNOSIS, AND THERAPY SELECTION).”
In light of these milestones, the market has rallied behind HTGM stock as it makes new Q3 highs. What about its short interest? According to data from Fintel.IO, the current short float percentage on the stock sits around 45%.
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Blue Apron Holdings (NYSE: APRN)
Meal kit company Blue Apron Holdings is also one of the short squeeze stocks on Robinhood to watch. Shares have rallied since mid-June as the summer grilling season began. In line with this, Blue Apron released new “seasonal meal kits” to the public. The company also secured a place on Walmart.com to offer its products.
“Through our work with Walmart.com Marketplace, we will be able to scale our e-commerce presence and introduce restaurant-quality meals without a subscription to a new group of customers who may not have considered meal kits before,” said Dani Simpson, Blue Apron’s Chief Marketing Officer, in a June update.
Where does APRN stock list on this list of short interest stocks? Fintel and TDAmeritrade have the short float percentage on Blue Apron sitting at the higher end of the spectrum. The two outlets show this figure in a range of 29.1%-33.17%.
Acutus Medical (NASDAQ: AFIB)
Heart health company Acutus Medical has done a good job of recovering in the stock market this quarter. Following 52-week lows of $0.48 in late June, AFIB stock has bounced back by more than 100%. An FDA-related milestone was one of the recent catalysts helping with the move higher.
Acutus announced FDA Clearance and the commercial launch of its AcQCross Qx system used with the TruSeal and FXD delivery system for the Watchman LAAC Device. According to Acutus, AcQCross is the “first and only” transseptal system engineered with an integrated needle and dilator to reduce the exchange of wires and needles to gain access to the heart’s left atrium. David Roman, interim Chief Executive Officer and Chief Financial Officer, Acutus Medical, explained in a June update, “The expanded AcQCross product line allows us to bring this innovative technology to a wider range of procedure categories that should drive sustained growth in this portfolio.”
Earlier this month, Acutus finished the first of two closings for a previously reported sale of its left-heart access portfolio to Medtronic Inc. Medtronic paid $50 million and acquired intellectual property rights to Acutus’ left-heart access portfolio and specific equipment used in the manufacturing of these products. Acutus is also eligible for payments of up to $37 million associated with certain manufacturing and regulatory milestones, as well as up to four years of revenue-based earnouts.
What about the AFIB short interest? Right now, the short float percentage on the stock sits between 15.09% and 23.56%, according to TDAmeritrade and Fintel.IO.
Are Short Squeeze Stocks Right For You?
As of this article, none of these stocks under $5 have “squeezed” to the magnitude that other short interest stocks have in the past. However, as they say, knowing is half the battle. If you’re looking for short squeeze stocks on Robinhood, knowing short float information and how to trade stocks and options prone to high volatility are crucial.
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