Penny Stocks Are Prone To Volatility And These 3 Companies Made Fresh September Highs This Week. Will The Trend Continue?
When it comes to penny stocks, if a particular sector grows significantly it can exponentially impact smaller companies. Therefore, it’s important to consider watching some of the penny stocks that are available in that specific sector. In this instance, big deals made by big companies have helped bring attention to the biotech sector in September.
If an investor wants to buy penny stocks in certain sectors, then they need to conduct their own research, thoroughly. Don’t blindly jump into any stock let alone a stock in a high-risk sector like biotech. Understand what could be the root cause of the move for certain penny stocks.
Is it sustainable or is it just a short-term catalyst? Keeping an eye on the market is equally important and on that note, here is a look at three biotech penny stocks which have made solid gains recently.
Biotech Penny Stocks #1 Abeona Therapeutics
One of the biotech penny stocks that made a sharp move this week was Abeona Therapeutics Inc (ABEO Stock Report). It went on to emerge as one of the biggest gainers in the market yesterday.
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ABEO stock has been beaten down for much of 2019. It had declined by as much as 80% since the beginning of the year.
However, yesterday the company announced that it was going to explore options that could unlock value for the shareholders. It stated that even an outright sale or a takeover is being considered. Once the penny stock’s news spread, ABEO started climbing and recorded gains of 116% since closing at $1.54 on the last day of August.
Biotech Penny Stocks #2 Dynavax
Dynavax (DVAX Stock Report) is another penny stock to watch this month. The biotech company made significant gains since the beginning of August. Earlier last month, the company had posted a loss in Q2 2019 but it beat analysts’ estimates for revenues.
That resulted in a steady climb in DVAX stock. Over the course of the past month, the penny stock has jumped by as much as 73.5%. On Tuesday the stock rose further and it goes without saying that this is likely one of the biotech penny stocks to watch in September.
Biotech Penny Stocks #3 Marinus Pharmaceuticals
Another biotech penny stock that has been on a tear for the past few days is Marinus Pharmaceuticals (MRNS Stock Report). On Tuesday, the company earned attention from analysts at H.C. Wainwright. The research firm initiated coverage on MRNS stock. It gave the company a “BUY” rating as well as a price target of $5 per share.
This was the 3rd analyst firm to initiate coverage on the stock this year. Previous to H.C. Wainwright, Jefferies and Leerink Swann both initiated coverage with “BUY” and “Outperform” ratings, respectively, for the penny stock. The two other firms also agreed on a price target of $10 for MRNS. Since Tuesday, MRNS stock has gained as much as 60%.