The new year is rapidly approaching, which means figuring out how to make money in the stock market. One of the asset classes that has continued outperforming broader markets daily has been stocks under $5.
Known as penny stocks, these cheap shares are well-known for their short-term yet explosive moves. I don’t think they’re for the timid, and you should definitely have a good grasp of risk management and an understanding of how to day trade, in general. But with the proper education and skillset, finding penny stocks to buy can be extremely rewarding.
Today’s article focuses on a handful of cheap stocks to buy for under $5. They’ve all experienced an uptick in trading activity. We’ll look into any recent catalysts and try to identify any upcoming events that could be notable. Then you can decide if any of these names deserve a place on your list of penny stocks before 2023.
Penny Stocks To Watch
Vaxart Inc. (VXRT)
Traders have long waited to see an uptick in trading for Vaxart. The penny stock has been in a perpetual downtrend for months and reached new 52-week lows on Wednesday. However, VXRT stock pulled an about-face days before the new year after some recent developments.
Besides appointing a new Chief Financial Officer and beginning a clinical trial of itS oral norovirus vaccine, some “alternative data” was revealed this week. That data was insider trading activity that wouldn’t be found in any penny stock news events or PR updates. To find penny stocks with insider trading, you’ve got to look at the SEC filings. In particular, you’ll want to focus on things like Forms 3 & 4 and Schedule 13s to start. This week Director Mark Watson filed a Form 4 showing his purchase of 20,000 shares of VXRT stock at an average price of $0.757.
In addition, funding from the Bill & Melinda Gates Foundation has also raised some eyebrows. Earlier this month, Vaxart announced collaborative funding from the Foundation to support the new study of Vaxart’s norovirus vaccine candidate for protecting breastfeeding mothers & infants. All of this together has created some buzz in the markets before year-end and could be something to note if this is on your list of penny stocks to watch.
Akebia Therapeutics (AKBA)
This week Akebia stock continued surging higher following news that its Keryx Biopharmaceuticals unit and Averoa entered into a license agreement. The company granted Averoa an exclusive license to develop and sell ferric citrate in the European Economic Area, UK, Switzerland, and Turkey. The milestone represents an opportunity for Akebia to benefit from royalty payments ranging between mid-single-digit percentages and low double-digit percentages.
The news also comes shortly after a filing from Muneer Satter (Schedule 13G filing) showing a stake of 7.5% in AKBA stock. This equated to roughly 13.86 million shares. As discussed in the section about Vaxart, insider and institutional trading activity can play a role in influencing market sentiment.
Looking ahead, AKBA stock could remain on the radar for some in anticipation of an upcoming FDA-related event. Akebia received an interim response from the FDA to its Formal Dispute Resolution Request regarding a Complete Response Letter from March for its vadadustat platform. This is Akebia’s candidate for treating chronic kidney disease.
The company met with the FDA last month to discuss its appeal and next steps. As a result, Akebia expects to submit the requested information next month. In addition, the company anticipates receiving a response to its appeal 30 days after submitting the requested info.
Eiger BioPharmaceuticals (EIGR)
We discussed how Eiger BioPharmaceuticals’ stock price has risen in an update earlier this week. On Tuesday, shares traded down to lows of $1.01. Wednesday’s session saw the penny stock rebound to highs of $1.23, and that trend continued on Thursday with a jump to $1.30 before the end of the lunch hour.
The company continued battling back from data from a phase 3 trial of its hepatitis treatment, lonafarnib. Though there was “statistical significance over placebo in the composite primary endpoint,” it wasn’t enough to impress the market. In the lonafarnib treatment groups, 8 and 14% of patients reported “serious treatment-emergent adverse events, compared to 10% and 4% of the peginterferon alfa and placebo groups, respectively.
One of the points of focus for traders right now is what comes next. Eiger said it plans to engage with regulatory agencies, beginning with a pre-NDA meeting with the FDA. Since it’s anticipated in Q1 2023, it is becoming more of a near-term event to note. Eiger wants to discuss pathways for regulatory submissions. Meanwhile, this week also saw insider trading reported by company director Jeffrey Glenn. He purchased 100,000 shares of EIGR stock at an average price of $1.2795.
Protalix BioTherapeutics (PLX)
Something you might find interesting is while the stock market is down, biotech penny stocks have been performing well overall. Not only does this list of penny stocks include such names, but Protalix BioTherapeutics is another example of this trend. Shares of the company have been bullish most of the year, and a recent uptick in momentum has raised some speculative attention on the stock.
Protalix develops therapeutic proteins made by its ProCellEx platform. It’s the company’s plant cell-based protein expression system and has recently been a point of interest. Earlier this month, the company announced FDA acceptance of a joint resubmission of an application for Fabry disease treatment.
Protalix and Chiesi Global Rare Diseases announced the resubmitted and accepted Biologics License Application for PRX-102. Now all eyes are on the FDA’s next action date, which will be May 9th, 2023. This is the Prescription Drug User Fee Act or PDUFA date for the outcome of the BLA.
If approved, Protalix will be eligible to receive a milestone payment from Chiesi.
List Of Penny Stocks To Watch Before 2023
- Vaxart Inc. (NASDAQ: VXRT)
- Akebia Therapeutics (NASDAQ: AKBA)
- Eiger BioPharmaceuticals (NASDAQ: EIGR)
- Protalix BioTherapeutics (NYSEAMERICAN: PLX)