Analysis of Penny Stocks with Insider Moves
The allure of penny stocks is undeniable. Their low price point, combined with the potential for high returns, makes them a tantalizing option for investors. However, as with all investments, there are risks involved. One way to mitigate these risks is by monitoring insider activities.
The Value of Insider Information
Insiders, such as company executives or board members, have a unique perspective on the company’s operations and future prospects. When they buy or sell shares of their own company, it can be seen as a vote of confidence or concern about the company’s future.
Reasons for Insider Buys in Penny Stocks
- Confidence in the Company: One of the primary reasons insiders buy shares is their belief in the company’s future. They might have information about upcoming projects, deals, or other positive developments that could boost the stock price.
- Undervaluation: Insiders might believe that the stock is undervalued and that the market hasn’t recognized its true potential. Buying at a low price can yield significant returns if the stock price appreciates.
- Signaling to the Market: Insider buys can also be a strategic move to signal to the market that the company’s leaders have faith in its future. This can attract other investors and potentially drive up the stock price.
Caution is Key
While insider activities can provide valuable insights, they shouldn’t be the sole basis for investment decisions. There are various reasons insiders might buy or sell shares, and not all of them are related to the company’s performance. For instance, an insider might sell shares for personal reasons, such as buying a home or paying for college tuition.
Penny Stocks to Watch
While the article mentions a list of penny stocks with recent insider activities, it’s essential to conduct thorough research before making any investment decisions. Look at the company’s fundamentals, recent news, and other relevant factors. Penny stocks offer a world of potential. But they also come with inherent risks. With the right information and a strategic approach, investors can navigate the volatile world of penny stocks to watch and potentially reap significant rewards.
1. Globalstar Inc. (NYSEAMERICAN: GSAT)
The last week has been strong for Globalstar. The company’s shares climbed from around $1 to highs of $1.60. This move also coincided with news of Dr. Paul Jacobs coming on as CEO. It was also accompanied by details on an agreement to license Jacob’s start-up Xcom Labs to license its tech. Jacobs is also the former CEO of Qualcomm, which brings its own acclaim.
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Dr. Jacobs said, “I have devoted my career to advancing and commercializing innovation in wireless technology and am thrilled to continue this journey as CEO of Globalstar. The teams I’ve led have demonstrated the value creation that is possible by applying new technology to enhance capacity of underappreciated spectrum, and that is one of the many opportunities I see at Globalstar.”
As for insiders, Director James Monroe is the latest to purchase shares. He added over 4 million GSAT shares at an average price of roughly $1.13. Details in the purchase notes include the trades representing shares acquired by Thermo XCOM LLC in consideration for its release of debt owed by XCOM Labs, Inc. They also represent shares purchased from XCOM in a private placement in connection with the Intellectual Property License Agreement and other transactions disclosed in the Form 8-K filed with the Commission on August 31, 2023.
2. Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
SENS stock has bounced back after a recent stint of selling pressure last month. 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.
Retail traders are also watching the SENS stock short. According to data from sources like Fintel and TDAmeritrade, the Senseonics short float is around 10.86%. Given the longer-term selling pressure in the stock market earlier this year, short-squeeze stocks are back in focus.
Other than the short, SENS stock has a more near-term potential catalyst. Its second quarter 2023 financial results were mixed but management commentary may have become a focal point.
“In the second quarter, we continued to execute on our strategic priorities of advancing our product pipeline and collaborating with Ascensia Diabetes Care, our global commercial partner. The FDA submission for the iCGM designation and the expansion of both Ascensia’s dedicated U.S. CGM salesforce and the NPG partnership support our drive to increase patient and provider adoption of our Eversense System.”
Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics
3. P3 Health Partners Inc. (NASDAQ: PIII)
If you’ve read our articles on penny stocks with insider trading, PIII stock is likely familiar. 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.”
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P3 provides primary care providers with the 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 company’s latest headlines have also sparked some attention including a Q2 earnings beat. Analysts expected P3 to post a loss per share of $0.24 but it instead posted a 9-cent loss. Sales also beat expectations by over $25 million. The company expects 2023 revenue to be in a range of $1.2 billion and $1.25 billion.
This week P3 presents at the Wells Fargo Healthcare Conference. It also continues to conference circuit next week at the Lake Street Best Ideas Growth Conference on the 14th. The results and performance seem to echo recent analyst ratings. BTIG initiated coverage on PIII stock at the beginning of September with a Buy rating. It also set a $5 price target.
Insiders are back at it again in PIII stock. This time Chicago Pacific Founders Ugp is picking up hundreds of thousands of shares. The firm boosted its position from 48.87 million shares in June to more than 49.48 million at the time of its last purchase.
