Investors often rely on stock market news to stay abreast of everything, ranging from low-cost penny stocks to industry giants such as Apple or Tesla. It’s no secret that news can ignite excitement and skepticism in the blink of an eye, fueling speculation and thereby increasing market volatility.
Understanding Penny Stocks
Before we dive into the penny stocks that should be on your radar, let’s first understand what they actually are. Typically, penny stocks are known as shares of companies that are available for less than $5. Sometimes, this term is expanded to include stocks trading even under $1, providing an attractively low-cost entry point for investors. The appeal of these stocks resides in their potential for quick, substantial gains, although they often come paired with significant risk.
Is Penny Stock News Relevant?
There are various methods to discover appealing penny stocks to invest in, and one of these involves following the latest news headlines. But should news be your only guide? The simple answer is no. Creating a sound trading strategy requires considering an array of factors. Look for signs of market direction, such as unusual trading volume, options activity, and crucial business documents like insider trading reports, among other valuable tools and insights.
In this feature, we’re focusing on a set of penny stocks that have drawn attention due to recent shifts in the stock market landscape. We’ll break down some key facts you need to know and explore additional information about forthcoming events or updates. By doing so, we aim to provide you with a cutting-edge perspective, helping you stay one step ahead in spotting the best penny stocks to keep an eye on.
Penny Stocks To Watch
- Protalix BioTherapeutics Inc. (NYSEAMERICAN: PLX)
- Tonix Pharmaceuticals (NASDAQ: TNXP)
- Gracell Biotechnologies Inc. (NASDAQ: GRCL)
- Diversified Healthcare Trust (NASDAQ: DHC)
- Amneal Pharmaceuticals (NYSE: AMRX)
Protalix BioTherapeutics Inc. (PLX)
Thanks to an explosive session for biotech penny stocks like Vistagen (VTGN), the sector as a whole is gaining momentum. Protalix is one of the companies gaining attention and some penny stock news has come into focus.
PLX Stock News
Protalix reported financial results for the second quarter ended June 30, 2023 and provided a business update on recent regulatory, clinical and corporate developments. It beat estimates for EPS by a significant margin, it also posted a notable sales level compared to what Wall Street was anticipating.
Dror Bashan, Protalix’s President and Chief Executive Officer explained, “We are very proud to have received regulatory approval for Elfabrio® in both the United States and the European Union, a significant milestone for adult Fabry disease patients and their families alike. Our commercial partner, Chiesi Global Rare Diseases, has the expertise and global reach to maximize the potential of Elfabrio, and Chiesi has already launched the product in the United States…We now turn our focus to strengthening our rare disease pipeline programs and building a sustainable portfolio.”
Tonix Pharmaceuticals (TNXP)
Another one of the biotech penny stocks to watch this week is Tonix. Shares of TNXP stock popped for the first time since imploding at the end of July. The company priced a 7 million share offering at a discount to the market price at the time. Now that the dust has settled, it looks like Tonix has begun making new progress.
TNXP Stock News
This week the company announced that it completed the clinical phase of its PREVAIL proof-of-concept study of its TNX-102 in fibromyalgia-type long COVID. Topline results for the PREVAIL study are expected in the third quarter of 2023.
Gracell Biotechnologies Inc. (GRCL)
Gracell, as the name suggests, is another biotech company on this list of penny stocks. The company develops cell therapies for treating cancer and autoimmune diseases. Its FasTCAR and TruUCAR platforms are being leveraged for a pipeline of candidates. The lead FasTCAR-T GC012F is being evaluated for multiple myeloma indications as well as B-NHL and systemic lupus erythematosus.
GRCL Stock News
This week the company announced a $150 million private placement led by Vivo Capital. Gracell said it intends to use the net proceeds from the proposed financing to fund research and development of its clinical-stage product candidates and research programs and for working capital and other general corporate purposes.
Diversified Healthcare Trust (DHC)
Diversified Healthcare is a real estate investment trust (REIT) focusing on healthcare properties in the US. Looking at any DHC stock chart, you’ll notice a significant move since the beginning of May. Notable earnings results for the first half of this year have aided this.
Flat Footed LLC, a top shareholder of DHC stock, has called on the company’s board to address, among other things, a proposed merger with Office Properties Income Trust (NASDAQ: OPI). Flat Footed wants Diversified Healthcare to reject the merger.
DHC Stock News
This week Diversified sent a letter to shareholders outlining the process to “maximize shareholder value,” which included the proposed merger. It said the merger is the “best strategic alternative” for DHC shareholders. Based on the timing of this vote, it will be interesting to see if shareholders approve the plan.
Amneal Pharmaceuticals (AMRX)
Amneal develops a diverse portfolio of hundreds of generic and specialty pharmaceuticals. The penny stock has been on fire since March and reached fresh 2023 highs on Monday. The move comes after last week’s explosive jump following earnings. It beat estimates for EPS and sales. Company management also seems optimistic on the prospects of Amneal.
“We expect many key catalysts ahead, including complex generics launches, an expanded injectables portfolio, strong biosimilars uptake, continued specialty growth, expansion across AvKARE distribution channels, and an emerging presence internationally. As one of the largest domestic pharmaceutical manufacturers, we are focused on doing our part in addressing the ongoing drug shortages in the U.S. market,” said Chirag and Chintu Patel, Co-Chief Executive Officers.
AMRX Stock News
This week’s stock market news comes in the form of analyst ratings. Barclays and Truist Securities have an Overweight and Buy rating, respectively, and raised their targets on Monday. Barclays increased its $4 target to $5. Truist went from $4 to $6.