Are You Watching Penny Stocks? These Insiders Are
Are you trying to find penny stocks to buy? What about seeing what insiders are doing? When the people who work inside a company, like the CEO or other executives, buy shares, it can be a bullish sign. Some traders presume these insiders think the company will do well in the future.
Insiders usually have access to information that the public might not. They know about specific plans, financial health, and how well it is performing overall. So, when they buy shares, it can be considered a good indication that they think highly of the company’s future prospects.
On the other hand, if insiders are selling shares, it might be a sign they think the company will not perform well. This can send the stock price lower. So, paying attention to insider buying and selling is important.
It’s important to remember that just because there is insider buying doesn’t always mean that the stock price will go up. There could be other factors that affect the stock price. These include changes in the economy or competition, for example. But, seeing insider buying can still be valuable information to help you make your list of penny stocks to watch.
Researching Penny Stocks & Insider Activity
When you’re thinking about buying penny stocks, it’s important to do your own research and not just rely on insider activity as the only factor. You should look at things like financial statements, the industry it is in, and how it is performing compared to its peers.
It’s also important to remember that insider trading is just one of many things to consider when making investment decisions. However, it’s valuable to know when company management or larger investors are adding shares. In this article, we look at a few penny stocks with million- and multi-million dollar bets being placed on them this quarter.
Precigen Inc. (PGEN)
Shares of PGEN stock have experienced one of the most volatile months in quite some time. While the share price remains higher than where it was at the start of the year, how it arrived at these current levels is quite a site to see. Precigen kicked off the year with an investigator-led R&D event in January, which saw the stock price surge higher. Last month, it also provided a pipeline and corporate update at the JP Morgan Healthcare conference.
But news of a large funding round ($75 million) sent the stock back to earth. While the funding round brought a short-term bout of bearishness, the market is now focused on using proceeds after the financing closed. Precigen said it plans to use the month to fund the development of clinical and preclinical product candidates and for working capital. What’s more, even after the offering closed, analysts at firms like Cantor Fitzgerald started positively adjusting their outlook. The firm upped its $7 target to $10 and currently maintains an Overweight rating on the stock.
Precigen is developing gene and cell therapies leveraging precision technology and targeting immuno-oncology, autoimmune, and infectious diseases. In a recent Phase 1 dose escalation study and expansion cohort data presentation, Precigen delivered a favorable report. Its “Off-the-Shelf” PRGN-2012 AdenoVerse immunotherapy was well-tolerated in patients with recurrent respiratory papillomatosis.
What do insiders think about PGEN stock? The latest Form 4 was filed by Randal Kirk, a director and 10% owner of Precigen. Via his R.J. Kirk Declaration of Trust, over 11.4 million shares of PGEN stock were purchased at $1.75 per share. Kirk’s trade was valued at nearly $20 million at that price. It also brought the position in the DOT to over 31 million shares.
– Penny Stocks & What To Watch in the Stock Market This Week 2/6-2/10
Advanced Emissions Solutions Inc. (ADES)
Shares of Advanced Emissions Solutions have been on the radar since the start of the year. The company has been in the process of completing the acquisition of Arq Limited’s business. Advanced Emissions focuses on emission control solutions for coal-fired power generation and industrial and municipal water purification. Earlier this month, the company officially announced the completion of the transaction.
CEO Greg Marken explained many of this deal’s high points in a press release. Marken said, “We believe this is the next step in building long-term growth through diversification of potential products and customers which will result in higher margin opportunities within the activated carbon market, as well as enabling access to additional potential revenue streams that our Company, without Arq, would not have been able to access.”
Marken also said, “The capital that we will be installing, most of which will be at our Louisiana-based facilities, enables the processing of bituminous-based feedstock and decreases our long-term exposure to potential headwinds we would have otherwise faced within our power generation market. The result of this transaction is a truly differentiated environmental technology company with new growth avenues and a path toward long-term, sustainable profitability.”
The company announced the closing of a $15.4 million financing round from Arq shareholders and members of Arq management. The funding was done at a price of $4 per share. This is where we see several directors recently reporting fresh Form 4s. Jeremy Blank, Julian McIntyre, and Richard Campbell-Breeden collectively purchased over $7 million in ADES stock. The largest buy came from McIntyre, who bought over 1.2 million shares via Allard Services Limited and Stannard Limited. Both are associated with McIntyre indirectly.
Express Inc. (EXPR)
We discussed Express Inc. earlier today. In the article “Best Penny Stocks To Buy: 5 To Watch With Big News This Week,” we highlighted one of the recent catalysts. Express announced the expansion of its collegiate athlete-style ambassador program. Sara Tervo, Executive Vice President, and Chief Marketing Officer at Express, explained, “Over the last year, we have seen incredible success with this program. We can’t wait to work with these talented athletes who have great style and represent confidence and authenticity.”
But that might not be entirely why traders are looking at EXPR stock right now. Other catalysts at play include speculation surrounding meme stocks. That’s thanks to Bed Bath & Beyond (NASDAQ: BBBY) and AMC Entertainment (NYSE: AMC). Both of which exploded at the beginning of the week. Express was wrapped in the meme stock trend early on. It was even one of the stocks restricted by Robinhood at the height of the craze.
In addition to this, insider trading activity is in the spotlight. Director Yehuda Shmidman reported purchasing over 5.4 million shares of EXPR stock at $4.60. This purchase was through a private placement transaction with EXPWHP, LLC. According to the filing, Shmidman has beneficial ownership of the securities held by EXPWHP via its $25 million purchase. Late last month, WHP Global completed a deal for a $260 million investment in Express. Yehuda Shmidman is the chairman and CEO of WHP.
If you recall from our article, “Penny Stocks To Buy Now? 7 To Watch With Big News this Week,” Express announced the closing of a transaction with WHP Global as a strategic partner. The idea is for WHP to help enhance branding for Express and allow it to scale through non-core domestic licensing opportunities and global expansion. WHP made a $25 million equity investment (shown via this latest Form 4) and committed $235 million to the Express/WHP IP joint venture.
List Of Penny Stocks To Watch [Insider Edition]
- Precigen Inc. (NASDAQ: PGEN)
- Advanced Emissions Solutions Inc. (NASDAQ: ADES)
- Express Inc. (NYSE: EXPR)
