If you’re looking for the best penny stocks to buy, chances are that you’re looking for potential catalysts. This might come in the form of news headlines, social sentiment, speculation, or a mix of different catalysts. One that has stood out for investors in the stock market today is insider trading.
I’m not talking about insider trading that gets people in trouble. This type is publicly reported in an SEC filing and shows specific details like purchase or sale dates, average purchase or sale prices, and how shares were bought or sold. While there are no guarantees insider buying means stocks will go up or selling means stocks will drop, it has been used to gauge sentiment.
There’s something to be said when insiders are buying up shares of their company stock. This article looks at a handful that management and large holders are accumulating this quarter. We look at who’s buying, their average prices, and any current or future potential catalysts that could be worth looking at. Then you can decide if “following the money” means adding any to your list of penny stocks to watch.
Penny Stocks To Watch
Mangoceuticals Inc. (MGRX)
Late last month, we took a closer look at Mangoceuticals. Known as MangoRx, it made its IPO at the end of the first quarter and only recently managed to experience an uptick in trading action. The men’s health and wellness company leverages telemedicine to deliver products to customers. Recent catalysts include new viral advertisements and inclusion on popular retail trading platforms like Webull.
The company has also begun online direct sales using DataDojo AI and its customer data platform. “We are very excited to be working with DataDojo, whose team and founders are proven experts in marketing technology and e-commerce with over $1 billion generated in direct-to-consumer online sales through the use of their Customer Data Platform,” commented Jacob Cohen, CEO and Co-Founder of MangoRx, “…we believe the use of DataDojo’s AI tools, and CDP can play a significant part in increasing our online sales while maximizing our marketing spend efficiencies.”
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What’s going on with MGRX stock insiders? In a filing earlier this quarter, Mangoceuticals’ CEO Jacob Cohen reported purchasing 275,000 shares of MGRX stock at an average price of $1. According to the footnotes of the filing, these were purchased via a private transaction.
P3 Health Partners Inc. (PIII)
Shares of P3 Health stock have been on the radar since the first quarter of the year. This is when, coincidentally, insiders were buying shares of PIII stock. At the time, Michael Balkin, a 10% owner and manager of Foresight Sponsor Group, purchased 15,000 shares. According to footnotes in Form 4, “These 15,000 Shares (as defined below) were acquired in a single transaction through a self-directed individual retirement account of Mr. Balkin.”
Last year, P3 Health Partners went public via a SPAC transaction with Foresight Acquisition Corp. (formerly FORE). But like many of these types of transactions, the retail market saw a substantial decline to lows this year of $0.70. Nevertheless, the market continues watching P3 emerge as a player in the population health management industry.
Next week we get a glimpse at the company’s latest financial results for the first quarter of 2023. P3 beat sales estimates in its previous quarterly report but missed on earnings per share estimates. The company expects to do between $1.2 billion and $1.25 billion this year. P3 provides primary care providers with support of care coordination and administrative services. The main focus is improving patient outcomes at a lower cost. In partnering with local providers, P3’s team creates “an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system.”
The 10% owner, Chicago Pacific Founders UGP, is the most recent to file an insider transaction form. This quarter it disclosed the purchase of over 4.7 million shares at an average cost of $1.18 per share.
Kinnate Biopharma Inc. (KNTE)
Biotech companies like Kinnate have gained attention in the market thanks to their novel pipelines. However, the recent cooldown in high-growth market segments hasn’t played out favorably for some. Kinnate has experienced a downturn but recently saw an uptick in momentum following new developments. KNTE stock slumped from over $7 to below $2.40. Since reaching those lows, Kinnate has firmly bounced.
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The initial dip came after the company announced trial data and the addition of new drug candidates to its oncology pipeline. Even with the lackluster reaction in the market, many analysts still hold price targets significantly higher than current retail prices. Wedbush cited concerns over the cost of capital and the potential market share of Kinnate’s exarafenib. However, the first still has a $25 target. Goldman Sachs, which also lowered its target, still maintains a Buy rating with a price forecast of $26.
Orbimed Advisors is the most recent director and 10% owner to report insider trades. These came between April 28th and May 2nd at average prices ranging between $2.55 and $2.67.
Terawulf Inc. (WULF)
We’ve discussed Terawulf numerous times during the last few weeks, thanks to heightened interest in cryptocurrency. Rising Bitcoin prices have given a boost to sector stocks. Thanks to Terawulf’s involvement within the space, that sentiment has carried over to WULF stock. It is a Bitcoin mining facility operator leveraging low-carbon energy production platforms. It aims to capitalize on the new “green” mining opportunity being created thanks to a growing interest in environmentally friendly digital mining operations.
TeraWulf announced the full deployment of 50 MW at its Nautilus Bitcoin mining facility was ahead of schedule.
“Our team has been working swiftly and diligently to achieve our stated goal of reaching 5.5 EH/s of operational mining capacity in Q2 2023,” said Paul Prager, Chairman and CEO of TeraWulf. “Deploying 50 MW of mining capacity at the Nautilus facility is an important milestone for the Company. Not only does it represent the first nuclear-powered Bitcoin mining facility in the U.S., but TeraWulf now has the opportunity to realize the economic advantage of 50 MW of zero-carbon mining at what is arguably the lowest contracted power cost in the sector – just $0.02 /kWh for a term of five years.”
TeraWulf also recently announced that it would participate in investor events. Coupled with underlying industry momentum, it seems to be a focus for traders in the stock market this week. Meanwhile, CEO Paul Prager’s 100,000 share purchase earlier this quarter remains a focus. He bought WULF stock at an average price of $1.373 via Heorot Power Holdings. Prager is the sole manager of the holding company and is named as a beneficial owner.
List Of Penny Stocks To Buy [insider edition]
- Mangoceuticals Inc. (NASDAQ: MGRX)
- P3 Health Partners Inc. (NASDAQ: PIII)
- Kinnate Biopharma Inc. (NASDAQ: KNTE)
- Terawulf Inc. (NASDAQ: WULF)
