Robinhood Stocks That Can Be Bought For Under $0.99
Low-priced stocks, also known as “penny stocks” or “cheap stocks,” can be exciting for investors. Of course, this is despite their inherent risks. However, many brokers, such as Robinhood, restrict access to companies not listed on major exchanges. They say it is due to concerns over manipulation in the OTC market. It’s a tough argument to make when you allow users to purchase extremely cheap crypto like Shiba Inu, but that’s not what we’re talking about today.
While this limited access may restrict some of the cheapest stocks, such as those trading at $0.0001, it doesn’t mean all low-priced stocks are off-limits. This article looks at a list of stocks currently trading under $1 on platforms like Robinhood. Some have recently made significant announcements. Others are generating buzz in the stock market based on speculation. The one thing that all penny stocks on this list have in common is their high short interest.
It’s worth noting that these stocks are listed on major exchanges like NASDAQ and NYSE. That means they can be traded through any broker.
Short Interest Stocks
Why would anyone want to buy short-interest stocks or “short-squeeze stocks” in general? High short interest can be an indication of bearish sentiment. If the stock price drops, short sellers will make a profit. Conversely, if the stock price jumps, then short sellers have a losing trade on their hands.
Some investors try to take advantage of this by buying shares of the stock. The idea is that the short sellers will be forced to buy back the shares they borrowed to open their short positions originally. In this case, they’ll need to cover their short at a higher price. This helps drive the stock price up even more. This is known as a short squeeze. Though it’s a risky strategy, history has shown that if a “squeeze” happens, it can mean an aggressive and volatile move in the market.
Cheap Robinhood Stocks To Watch
Astra Space Inc. (ASTR)
Space stocks didn’t perform well heading into the new year. Now that 2023 has begun, many of the heaviest-sold stocks of the last 12 months are experiencing a rebound. Whether or not that lasts is to be seen. However, it has boosted optimism for traders looking for cheap stocks to buy.
Astra Space is one of these companies, and since the start of 2023, it has managed to climb higher. Last month, Astra announced it elevated senior leaders to the management team. CEO Chris Kemp further explained, “Key to delivering the full power of Astra to our customers is having a senior leadership team with deep experience, knowledge, and connectivity across the entire company — what we call horizontal leadership.”
Kemp also purchased over one hundred thousand dollars worth of ASTR stock before the new year, prompting some attention. In addition to the insider activity, the ASTR stock short float percentage is on watch as Fintel.IO data shows roughly 16%.
Blue Apron Holdings (APRN)
Shares of Blue Apron have been on the radar for those looking for short-squeeze penny stocks. Last year, it caught a “squeeze” that saw shares explode to highs of over $8. But, based on the current price, that didn’t last long, and now, the company’s financial situation is in focus.
One of the most significant catalysts originated from funding from a key investor, Joseph Sandberg, and his affiliates. They have committed to funding a purchase obligation of $55.5 million at $5.65 per share under a private placement agreement. Blue Apron has also begun cutting its workforce and seeking to drop expenses by $50 million this year. Blue Apron has also focused on pivoting from a members-only platform to a more broad retail model.
As far as the short goes, different sources provide some insight. Fintel shows the APRN stock short float sitting around 45.2%. Meanwhile, TDAmeritrade shows this figure closer to 50%.
Like Blue Apron, SmileDirectClub is one of the household name stocks to fall into the penny stock range over the last year. Despite hitting 52-week lows right before the end of 2022, the New year has seen a welcomed about-face for the company’s shares. Much of the excitement and source of. speculation hinges on news of a realignment (no pun intended).
The plan is to streamline its focus on the company’s core business and portfolio. “SmileDirectClub has taken decisive steps over the past year to embed rigorous financial discipline throughout the business and ensure we are positioned to capitalize on the investments we have made to place our company on the leading edge of innovation in oral care technology,” said CEO David Katzman. “These steps are designed to ensure we’re able to deliver value to our customers and our shareholders, and to continue our mission of making premium oral care affordable and accessible to everyone.”
Where traders may be looking right now is the company’s short float percentage. Both TDAmertitrade and Fintel have this sitting around 20%.
Arrival Group (ARVL)
Shares of Arrival Group have continued to perform well this year. That’s compared to a tough last few months of 2022. The company announced lackluster earnings and reported a need for more funding to keep the lights on. This didn’t resonate well with investors. Arrival also swapped in a new interim CEO.
However, ARVL stock is trading to the upside at the start of the New Year. Some of the attention has been on institutional ownership of the company. In particular, Kinetik S.à r.l. and related funds reported a significant stake in Arrival via an amended Schedule 13D filing. As speculation has focused on the company’s next strategic move, momentum in the market has picked up.
Is ARVL a short-squeeze stock to watch? Right now, data from TDAmeritrade show the short float percentage on this cheap Robinhood stock sitting just under 23%.