If there’s one thing that gets people going, it’s seeing what “big money” or “smart money” is doing. Quarterly and periodic filings from top Wall Street hedge funds tend to spark intrigue in certain companies. Meanwhile, “following the money” stretches to company leadership as well. Today we look at a few penny stocks to buy according to the latest string of insider buying in August. Moreover, these insiders have snagged millions of dollars in their companies’ shares. This apparent vote of confidence has also boosted bullish sentiment in the stock market this month.
Penny Stocks To Buy [according to insiders]
- Nerdy Inc. (NRDY Free Report)
- F45 Training Holdings (FXLV Free Report)
- Avaya Holdings Corp. (AVYA Free Report)
- Terns Pharmaceuticals Inc. (TERN Free Report)
Nerdy Inc. (NYSE: NRDY)
Online learning platform provider Nerdy is in focus as insider buying prompted significant trading levels in the stock market today. CEO and company director Charles Cohn grabbed 5 million shares of NRDY stock via Rarefied Air Capital. The firm is owned by three trusts, including Cohn Family Trust U/A/D 3/16/2017, The Cohn Family Investments Trust 05/24/18, and 2018 Cohn Family Trust U/A/D 5/24/2018. This purchase brought Rarefied Air’s total holdings to 10 million in trade, valued at $17,500,000.
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The buying comes less than a week after Nerdy announced the acquisition of coding education startup, Codeverse. It allows children to build apps and games using code and will open new opportunities to Nerdy in the emerging computer sciences and coding education markets. The insider trading also comes after multiple analysts boosted their outlook on NRDY stock. Needham and Cantor Fitzgerald upped their $4 targets to $5 and kept Buy & Outperform ratings. Goldman Sachs also increased its $3 target to $3.50 but maintained a Neutral rating.
Nerdy Inc reported over $42 million in revenue last quarter, which outpaced estimates of just under $39 million. This exceeded previous guidance, which the company set to $37-$40 million. More NRDY stock filings here
F45 Training Holdings (NYSE: FXLV)
A company made popular by one of its lead investors, Mark Wahlberg, faced plenty of scrutiny following the 2022 IPO. F45 focuses on 45-minute workouts using fitness programming algorithms to deliver content, including functional training. The company hosts its classes at physical studios despite the virtual training nature of the business model.
Wahlberg helped add notoriety to the company during the pre-IPO phases. The singer, actor, and producer sold over $10 million in FXLV stock in March and April. That hasn’t meant insiders aren’t still attracted to the company. This week, Director and 10% owner Kennedy Lewis Management LP grabbed over 1.21 million shares of the health and wellness company’s shares. Board member Darren Richman co-founded Kennedy Lewis with David Chene in 2017. He also holds Board seats at Vemo Education, Eastman Kodak, and Outward Bound USA. The purchases were made between August 18th and 19th at weighted average prices ranging from $2.1214 to $2.1913 and amounted to more than $2.6 million.
F45 is still working to adjust its performance. The company missed earnings estimates for the second quarter. “Consumer demand for F45 remains strong, and we continue to deliver results to our franchisees, our members, and the communities we serve. To that end, I would like to express my appreciation to our employees and our franchisees for their continued focus and execution,” explained Interim CEO Ben Coates in an earnings update.
Thanks to more attention on insider buying and the massive swipe taken by Kennedy Lewis, FXLV stock may be back in focus. More FXLV stock filings here
Avaya Holdings Corp. (NYSE: AVYA)
Like the other names on this list of penny stocks, Avaya has gained attention thanks to a multi-million dollar insider buy in August. Theodore Walker Cheng-de King, a 10% owner of AVYA stock, has done a significant amount of buying this month.
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The company’s stock gapped down significantly at the end of July, following preliminary Q3 results and a change in CEO. Specifically, the company said that prior financial guidance should no longer be relied upon and slashed Q3 guidance from $685 million-$700 million to $575 million-$580 million. This fell short of the $692.09 million expected by Wall Street firms.
Thanks to this latest string of bullish insider activity, AVYA stock is back on the radar for now. The big question is, how will this impact the market in the long term? More AVYA stock filings here
Terns Pharmaceuticals Inc. (NASDAQ: TERN)
Finally, Terns Pharmaceuticals was one of the red hot penny stocks to watch within the last few weeks. The company gained momentum starting on August 12th after announcing an oversubscribed $65 million offering at a price representing a premium to the prior session’s closing price.
The company earmarked proceeds for clinical studies assessing its TERN-701 platform, including advancing it into Phase 2 development in chronic myeloid leukemia. It also has plans to use funds to advance its TERN-601 and TERN-501 platforms in obesity and NASH. Shortly after the news broke, Director and 10% owner Orbimed Advisors filed a Form 4 showing the purchase of more than $8.9 million in stock, purchased at the $2.42 offering price.
Others participating in the insider trading in TERN stock this month include Director Hongbo Lu, who snagged over $2.6 million shares at an average price of $2.66 via Vivo Opportunity, LLC. Given the slew of insider activity and plans to deploy capital to advance multiple platforms, TERN stock could be on the watch list this month. More TERN stock filings here.