The basic definition of penny stocks includes shares of public companies priced under $5. While some traders might argue that they are exclusive to the Over-The-Counter or “OTC exchange,” the truth is that numerous low-priced stocks can also be found on larger exchanges. The current stock market offers a vast selection of stocks under $5, partly due to the ongoing market sell-off this year.
Concerns about inflation, predictions of a 2023 recession, and the possibility of a stock market crash are all factors weighing on investors’ minds. However, the situation for penny stocks is somewhat unique, as speculation often plays a more prominent role in these low-priced shares.
Getting in on the ground floor or purchasing shares at their lowest point before a significant upswing is undoubtedly appealing. However, it’s important to note that these scenarios are more of an exception than a rule.
Focusing on the actual trade and setting emotions aside is more effective than attempting to time the market or a specific trade. In this article, we will explore several of the lowest-priced penny stocks currently garnering attention in the stock market. This continues the list in our article Best Penny Stocks To Buy? 4 Under $1.10 To Watch Now.
Penny Stock To Watch
Clover Health Investments Corp. (CLOV)
Biotech penny stocks are heating up this week, as you’ll see from this updated list. Clover Health continues battling back after a long-term downtrend since the start of March. Shares have bounced back 24% after CLOV stock tapped new 52-week lows earlier this month.
Clover offers access to healthcare for Medicare members via its Clover Assistant platform. It’s designed to collect patient data to support clinical decision-making. This week could be of particular importance for the company. It’s set to present at the Bank of America Healthcare conference on May 11th. CFO Scott Leffler will host starting at 1:40 pm ET.
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One of the most likely topics of focus could be the company’s plan of “business transformation to accelerate a path to profitability,” which was outlined in April. Andrew Toy, CEO of Clover, explained, “Our partnership with UST HealthProof will allow us to rapidly improve the efficiency of non-strategic core MA operations and greatly reduce our administrative costs. We’re absolutely focused on delivering a sustainable, profitable Clover Heath to our members and investors, and this is a huge step in that direction.”
Senseonics Holdings (SENS)
Another medical technology company on the list of penny stocks to watch under $1 is Senseonics. Like CLOV, SENS stock has recently bounced back after a long stint of selling pressure this year. The company develops implantable glucose monitoring systems for diabetes patients. Its Eversense, Eversense XL, and Eversense E3 are placed under the skin and communicate with a smart transmitter worn over the sensor. Updates are sent every five minutes to a mobile app for users to monitor.
One of the things that retail traders are watching for is the SENS stock short. According to data from sources like Fintel and TDAmeritrade, the Senseonics short float is around 14%. Given the longer-term selling pressure in the stock market, in general, short-squeeze stocks are back in focus.
Other than the short, SENS stock has a more near-term potential catalyst. This week it reports its first quarter 2023 financial results. These will be released after the market closes on Tuesday, May 9th. Obviously, depending on the outcome and management’s commentary, the market will react. In turn, this can present a high-risk scenario depending on the outcome of these results. Keep that in mind if SENS stock is on your watch list.
Opko Health Inc. (OPK)
Shares of Opko Health have steadily traded higher since the end of February. One of the unique things we found just before April began was unusually high options activity for the June expiration $1 strike calls. You can read more in the article Penny Stocks To Buy Now? 3 With Unusual Options Volume Today for more details. Since then, the open interest on those contracts and on the $2 strike calls has increased significantly. Meanwhile, there aren’t many open put contracts in that particular expiration.
The company recently reported earnings for the first quarter of 2023, highlighting several business milestones and strong financial results. In particular, OPKO beat estimates for earnings per share and sales for Q1. The company also discussed its ModeX Therapeutics business and the exclusive worldwide license and collaboration deal with Merck (NYSE:MRK). The two will develop MDX-2201 in Epstein-Barr virus with OPKO receiving $50 million upfront and is eligible for up to $872.5 million in milestone payment potential.
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OPKO has also attracted the attention of analysts. HC Wainwright reiterated its Buy rating on OPK stock. The firm also has a $3 target. Based on the current trading levels, the target is 60% higher. But there’s more to watch than what’s been published on the OPKO newsfeed. If you look at the company’s filings, you’ll see insider buying from company Chief Innovation Officer, Gary Nabel. He purchased over 460,000 shares at an average price of roughly $1.83.
List Of Penny Stocks
- Clover Health Investments Corp. (NASDAQ: CLOV)
- Senseonics Holdings (NYSEAMERICAN: SENS)
- Opko Health Inc. (NASDAQ: OPK)
- Novo Integrated Sciences (NASDAQ: NVOS)
- Spectrum Pharmaceuticals (NASDAQ: SPPI)
- Aditxt Inc. (NASDAQ: ADTX)
- Tuya Inc. (NYSE: TUYA)
