Are You Looking For Penny Stocks To Buy?
It has become an almost daily occurrence that at least one stock under $5 explodes. You can go back to our catalog of articles about exploding penny stocks and see for yourself. Whether it has been one of the famous meme stocks like Bed Bath & Beyond (NASDAQ: BBBY) or the latest short squeeze stock grabbing retail traders’ attention, there’s no shortage of excitement. Keep in mind that this is happening all while the stock market is down and trying to figure out its direction with Jackson Hole quickly approaching.
This week is no different and Minerva Neurosciences (NASDAQ: NERV) is the latest on the list of multi-bagger penny stocks to watch. Since the opening bell on Monday, August 22nd, shares of NERV stock have surged from under $3.30 to nearly $8.60 by Wednesday afternoon. The best part (if you read articles on PennyStocks.com) is we discussed this company frequently. In the article, 4 Hot Penny Stocks To Watch This Week, Minerva was in the discussion after several catalysts had put a spotlight on the penny stock.
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Why NERV Stock Is Up This Week
Part of the NERV stock breakout this week stemmed from Monday’s update. Minerva announced the submission of a New Drug Application to the FDA. The NDA was for its roluperidone in treating negative symptoms in schizophrenia patients. This news prompted hedge funds like Point72 Asset Management to take a stab at the biotech stock. A 13G filing shows the firm took an 8.8% stake in NERV stock. In the tidal wave that has ensued, shares of Minerva stock managed to climb 160% since the start of the week.
3 Penny Stocks To Watch
Now the hunt is on for the next round of multi-bagger penny stocks to add to the watch list. Today’s article explores a few popular names retail traders are taking a closer look at.
- Atara Biotherapeutics (NASDAQ: ATRA)
- Bark Inc. (NYSE: BARK)
- Sonder Holdings Inc. (NASDAQ: SOND)
Atara Biotherapeutics (NASDAQ: ATRA)
One of the active trends in the stock market today involves small-cap biotech stocks. NERV stock is one example of many other health-related names experiencing heightened volatility this month. Atara hasn’t seen a triple-digit breakout this week. However, ATRA stock has steadily climbed out of the depths of 52-week lows over the last four weeks.
Earnings were a significant catalyst for the company after Atara reported a surprise Q2 profit and higher revenue. For some perspective, earnings per share came in at 18 cents. This was a significant jump compared to its Q2 2021 EPS loss of 91 cents. Sales were also more than 10x higher at $51.58 million compared to just $3.87 million last year.
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What are traders looking at right now? The rest of this year has several potential catalysts to consider. These include new Phase 1 MRI data citing further evidence supporting MS treatment with ATA188 planned for presentation at a forum next quarter. There’s also an Investigational New Drug application anticipated for next quarter for Atara’s ATA3219 platform. On the heels of earnings and upcoming events, ATRA stock could be on the list of penny stocks to watch heading into the fourth quarter.
From a technical perspective, the 50-day moving average was a clear level of resistance that ATRA failed to break and hold above earlier in August. As shares head back in that direction, it will be interesting to see if ATRA stock manages to firmly make that move or fail once again as the year rolls on.
Bark Inc. (NYSE: BARK)
Pet product marketing company Bark Inc. has the market and insiders barking for more info right now (bad pun, I know). Following its fiscal Q1 results, the company’s shares gained significantly in the market in August. Bark reported a 12% YoY increase in revenue to $131.2 million, which was also above the previously set guidance of $130 million. Average orders also jumped. In this case, the 6% increase in orders equated to $31.07 per order. Full-year guidance was set at $556 million.
“We hit the ground running in fiscal 2023, executing across all of the key priorities that we laid out for the year. We are acquiring higher-value customers, growing our average order value at a healthy rate, and introducing more customers to our offerings in Food and Dental,” said Matt Meeker, Co-Founder and Chief Executive Officer of BARK.
Directors and management have been buying up shares of BARK stock this month, which has also helped boost sentiment. David Kamenetzky, a company Director, purchased over 90,000 shares at an average price of $2.4671 on August 17th. Meanwhile, the CEO, Matt Meeker, reported buying a little over 11,000 shares on August 19th between $2.175 and $2.1799. This mix of upbeat performance results and vote of confidence from insiders has sparked interest in BARK stock before September.
Sonder Holdings Inc. (NASDAQ: SOND)
The name of the game this month with Sonder Holdings has been ‘options’ flow. On numerous occasions, we’ve discussed unusual activity in the SOND stock options chain throughout August. That doesn’t seem to have slowed down in the stock market today. In particular, the March 17, 2023, $5 Calls saw 906 contracts trade compared to 134 Open Interest contracts. In addition, there is a significantly higher level of Call Open Interest throughout most expiration dates and strikes.
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The company specializes in hospitality technology to design unique experiences for guest accommodations. A mix of more robust earnings results and upbeat sentiment from analysts has helped propel SOND stock. Oppenheimer recently adjusted price targets and remained bullish in its ratings. The firm has an Outperform on Sonder and boosted its $3.75 target to $4 last week.
The update came after Sonder beat earnings estimates for Q2 with high hopes from management regarding the next few quarters. In the company’s earnings call, CFO Sanjay Banker said, “We continue to expect to grow full-year revenue by between 100% to 110% as compared to the full year 2021. We expect free cash flow in Q3 of approximately negative $45 million before a one-time restructuring cost. For the second half of the year, Q3 and Q4 combined, we are reaffirming free cash flow of better than negative $70 million before one-time restructuring costs.”
With this backdrop, SOND stock continues pushing higher in the stock market this week.
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