Red Hot Penny Stocks Moving Higher After Headlines
One of the go-to strategies for finding penny stocks to buy – at least for some traders – is identifying obvious catalysts. One of the most “obvious” typically comes in the form of company news. It takes more diligence than simply looking at the top headline and determining if the news is meaningful. But since there is such a low barrier to entry in finding corporate updates, it can be a quick way to make an initial watch list.
Why would I mention the ‘initial’ headline? When discussing penny stocks, speculation is generally a significant contributor to momentum. With that, it can be swayed with overly bullish commentary. Companies sometimes understand this dynamic and will play on that factor. So, when a headline might appear “incredible,” looking into the actual release and reading the finer detail might reveal something much less exciting. For this reason, if you’re using news as a theme for your penny stocks watch list, make sure to read more than just the first headline.
Today we look at a handful of penny stocks to look out for after PR wires heated up on Thursday. All have caught strong momentum during premarket trading and are gaining attention across most mainstream social media outlets. You’ll have to decide whether the news and market action makes these penny stocks with huge potential.
Penny Stocks Moving Today
Eloxx Pharmaceuticals (ELOX)
Last month Elox announced a reverse stock split that would take effect on December 1st but has only recently begun rising in share price. The company develops targeted therapies for rare diseases, including cystic fibrosis. Its ELX02 was granted Fast Track designation for this indication and Orphan Drug Designation for the same. Eloxx also has a pipeline that includes potential treatments for inherited diseases, cancers, kidney diseases, and ocular genetic disorders.
ELOX Stock News
This week’s “news” didn’t come from the company but from analysts. Oppenheimer maintains an Outperform rating on the penny stock. But it adjusted its previous $3 target to $50. The massive adjustment has shed a much brighter light on the penny stock as a result.
Bellerophon Therapeutics (BLPH)
Penny stocks under $1 have been a hot topic among retail traders in the stock market lately. However, Bellerophon’s latest headlines have helped it quickly graduate from those levels. The company develops cardiopulmonary disease treatments. Specifically, these treatments focus on patients with pulmonary hypertension in Greater China. Bellerophon also utilizes technology, including artificial intelligence and the Internet of Things, for diagnostic and chronic disease management.
BLPH Stock News
This week Bellerophon announced a license agreement to commercialize INOpulse in China with Baylor BioSciences. The two agreed that Bellerophon would receive a payment of $6 million and is entitled to royalties of 5% on net sales from all licensed INOpulse indications within Greater China.
ABVC BioPharma Inc. (ABVC)
Another one of the biotechnology penny stocks with news to watch today is ABVC BioPharma. The company develops oncology, hematology, central nervous system, and ophthalmology treatment candidates. It is another newly graduated penny stock under $1 gaining momentum in the stock market today. Shares surged following FDA-related headlines on Thursday.
ABVC Stock News
ABVC announced that the FDA notified the company that its Investigational New Drug application for clinical investigation of ABVC’s BLEX 404 was approved, and a study can proceed. BLEX 404 is the primary active compound in its ABV-1519 platform for treating advanced, inoperable, or metastatic non-small cell lung cancer.
Orchard Therapeutics (ORTX)
Shares of Orchard Therapeutics have been moving over the last week and on higher-than-normal volumes. Last month, the company announced “promising” early neurocognitive outcomes from a proof-of-concept study of its OTL-201 platform. Orchard’s stem cell gene therapy targets indications of mucopolysaccharidosis type IIIA or Sanfilippo Syndrome type A.
This week another one of Orchard’s candidates is in the spotlight, helping ORTX stock jump.
ORTX Stock News
Orchard announced the FDA cleared its Investigational New Drug application for OTL-203. This is its candidate for treating mucopolysaccharidosis type I. Leslie Meltzer, Ph.D., chief medical officer of Orchard Therapeutics, explained, “Our recent interactions with the FDA have been productive, and we look forward to advancing this registrational study designed to generate the data necessary to enable global regulatory submissions and potentially provide an urgently needed new treatment option for the MPS-IH community.”
Akili Inc. (AKLI)
The trend for this list of penny stocks seems to favor biotech stocks. Akili continues the list thanks to headlines that sent shares surging during premarket hours. The company uses “digital medicine” to develop cognitive treatments. Morgan Stanley recently initiated coverage on Akili with an Equal Weight rating and a price target of $2. Analysts noted that its lead product, EdeavorRx indicated for attention deficit/hyperactivity disorder (ADHD). It obtained marketing authorization from the FDA in mid-2020, and a commercial launch began in late 2022. Morgan Stanley said it anticipates EndeavorRx could generate more than $200 million in peak sales in ADHD.
AKLI Stock News
This week the company announced topline results from an expansion study evaluating the efficacy and safety of EndeavorRx in adolescents aged 13-17. The study achieved the primary efficacy outcome and showed a “statistically significant improvement” in attention function. This data will be used to file the label expansion of EndeavorRx with the FDA this year.