Engaging in the world of low-cost stocks often referred to as penny stocks, is appealing to those looking to capitalize on the potential upsides of the stock market. These stocks, priced below $5, are known for their intrinsic risk. They’re also known for the possibility of substantial returns. This makes them a frequent target for market speculation.
The allure of substantial gains attracts many to the exploration of these low-priced stocks. This can sometimes result in unexpected spikes in specific penny stocks, driven by specific market events or even seemingly random occurrences. Such unpredictable rises are often attributed to the “YOLO” attitude prevalent among enthusiasts of meme stocks.
Delving into Stocks Below $5 with Significant Insider Trading
In this examination, we investigate a range of stocks, each valued under $5, that have exhibited insider activity. Lawful insider trading—contrasting with its illegal form—includes situations where key stakeholders, like corporate executives, opt to invest in their companies or continue their current investment strategies.
These insiders typically have privileged access to the inner workings of the company, providing them with insights that are not easily accessible to the general investing public.
Insider transactions are usually detailed in specific documents such as Form 4s or Schedule 13s. These can reveal details of the purchases. The information included in these reports entails the number of shares bought, the average price, and the method of acquisition, whether through the open market or private dealings.
Deciphering the Connection Between Low-Cost Stocks and Insider Purchases
What ties penny stocks to insider buying? Several factors make monitoring insider activity a wise approach when assembling a watch list of promising penny stocks.
Observing insider purchases might be likened to gaining a backstage pass to the company’s overall well-being. If those most acquainted with the company are buying its stocks, it often indicates that the business is on a thriving trajectory. Such knowledge can be priceless for investors seeking profitable low-cost stocks with the potential for growth.
Navigating the Unpredictable Realm of Cheap Stocks
Fundamentally, the world of penny stocks is a terrain filled with both volatility and promise. By carefully studying insider buying patterns and understanding their significance, investors can discover unique opportunities and gain an edge in this thrilling aspect of the stock market.
The subsequent collection highlights low-cost stocks with significant insider actions in August. Do these stocks represent valuable risks as potential investments? Or are they better left alone? The choice is yours, but with the information provided here, you are more prepared to make well-informed decisions. This also continues the list of penny stocks in our article 7 Penny Stocks To Buy According To Insiders In August.
Penny Stocks To Buy [According To Insiders]
- Precigen Inc. (NASDAQ: PGEN)
- FiscalNote Holdings Inc. (NYSE: NOTE)
- Amarin Corp. (NASDAQ: AMRN)
- Rackspace Technology Inc. (NASDAQ: RXT)
- 1847 Holdings (NASDAQ: EFSH)
- RealReal Inc (NASDAQ: REAL)
- TFF Pharmaceuticals (NASDAQ: TFFP)
- Bioventus Inc. (NASDAQ: BVS)
- Gannett Co (NYSE: GCI)
- CommScope Holdings (NASDAQ: COMM)
Precigen Inc. (NASDAQ: PGEN)
Shares of Precigen continued pushing higher in the stock market today and tested levels near Q3 highs. The company is a gene and cell therapy developer, which recently made headlines earlier in the month. One of the most notable catalysts came with the delivery on its latest earnings and FDA-related news.
The company beat EPS estimates and missed sales expectations. The company said that its capital allocation strategies should extend its projected cash runway into 2025. Meanwhile, Precigen also reported that the FDA confirmed that its ongoing Phase 1/2 PRGN-2012 study will be a pivotal study to support accelerated approval. PRGN-2012 would potentially be the first therapeutic for treating recurrent respiratory papillomatosis.
“The eligibility of the Phase 1/2 study, which has already been fully enrolled and dosed, as the pivotal study to support accelerated approval has the potential to significantly reduce the product development time for PRGN-2012. We are thankful for the FDA’s decision, which underscores the importance of bringing innovative approaches for the treatment of this serious and rare disease,” said Helen Sabzevari, PhD, President and CEO of Precigen.
Who’s buying PGEN stock inside the company? Director Randal J. Kirk via his R.J. Kirk DOT, picked up over $750,000 worth of PGEN stock this month. The latest string of buying brought the total holding to more than 31,830,000.
FiscalNote Holdings Inc. (NYSE: NOTE)
Shares of FiscalNote have been on the rise over the last week following earnings. The company has developed an AI-driven software-as-a-service technology for policy and market intelligence. FiscalNote missed EPS and sales estimates, which contributed to the negative sentiment last week. However, over the last few days, NOTE stock has made a note-able rebound. Some of it may have to do with sentiment stemming from management commentary in the Q2 update.
“Our recent new product developments of FiscalNoteGPT and FiscalNote Risk Connector exemplify this AI leadership and underscore the essential value we bring to thousands of global customers who trust FiscalNote intelligence every day to turn insights into actions, convert challenges into opportunities, and mitigate risk to protect operations. We look forward to extending our track record of compounding growth, unmatched innovation, and customer excellence in the second half of 2023 and beyond,” said Tim Hwang, Chairman, CEO, and Co-founder of FiscalNote.
Who’s buying NOTE stock right now? Director Stanley McChrystal has been an active insider, buying shares of FiscalNote over the last few months. His most recent purchases totaled roughly $20,000 worth of stock. McChrystal conducted the purchases at prices ranging from $2.37 to $2.51.
Amarin Corp. (NASDAQ: AMRN)
Two days after reaching 52-week lows, Amarin Corp. has managed to rebound more than 10%. It develops treatments for cardiovascular disease management. Amarin recently received regulatory approval in Switzerland for its VAZKEPA for reducing cardiovascular events.
The last few weeks have seen a Q2 earnings beat from the company as well as several VAZKEPA-related milestones. Notably, the Scottish Medicines Consortium accepted the treatment for reimbursement. It was also provided the same in The Netherlands and Italy. Patrick Holt, President and CEO of Amarin explained the latest win in an August 9th update stating, “Today’s approval is a testament to the strength of VAZKEPA’s scientific data and evidence from the REDUCE-IT study, which included more than 1,600 Dutch patients across more than 40 clinical trial sites in the Netherlands.”
Holt is also at the center of the insider trading in AMRN stock this month. Trades on August 16th totaled more than $310,000 via the purchase of 300,000 shares.