Want to find the best penny stocks to buy right now? I bet you’ve got a strategy in mind. Are you hunting for chart set-ups or searching for unusual volume? Maybe you’ve got a price range in mind, like penny stocks under $1.
On the other hand, you might be looking for companies releasing news before the stock market opens at 9:30 AM ET. Today, we look at a different trend called “follow the money,” which specific traders use to identify insider sentiment. Let me explain.
The same general sentiment is observed, whether we’re talking about the latest round of stocks that Nancy Pelosi is buying, or company insiders are scooping up. When insiders or “important people” get behind a company through investing in it, the market can take this as a sign. The idea of “follow the money” means to follow the inflows and outflows of big buyers and insiders. Today we look at a handful of penny stocks to buy according to this cohort of investors.
Penny Stocks To Buy [According To Insiders]
- Oncternal Therapeutics Inc. (NASDAQ:ONCT)
- P3 Health Partners Inc. (NASDAQ:PIII)
- Pixelworks Inc. (NASDAQ:PXLW)
- Performant Financial (NASDAQ:PFMT)
- Vaccinex Inc. (NASDAQ:VCNX)
Penny Stocks To Buy 1. Oncternal Therapeutics Inc. (NASDAQ:ONCT)
One of the health-focused companies on this list with insider buying is Oncternal Therapeutics. The clinical-stage biopharmaceutical company is developing oncology therapies and advancing its current candidate, zilovertamab, in treating mantle cell lymphoma.
Earlier this month, Oncternal announced that it reached a consensus with the FDA on designing a Phase 3 trial ZILO-301 for MCL treatment using zilovertamab plus ibrutinib (branded by Abbvie/Janssen as ImbruvicaR. This “Study ZILO-301” is expected to begin next quarter.
ONCT Stock Insider Buying
This week a slew of Form 4s were filed showing insider buying from Oncternal’s General Counsel, CFO, CEO, and Chief Medical Officer. More than 60,000 shares were purchased at average prices ranging between $1.63 and $1.80.
2. P3 Health Partners Inc. (NASDAQ:PIII)
SPACs or Special Purpose Acquisition Companies have gotten a bad rap since the trend emerged during the 2020 pandemic. Effectively the same as what we’ve seen for years in the OTC market, a private company gets acquired by an already public company. In this case, the SPAC goes public with the sole plan of acquiring another company. Also known as a “blank check” stock, these SPACs have a shelf-life before they have to revise their strategy or face unraveling.
Last year, P3 Health Partners went public via a SPAC transaction with Foresight Acquisition Corp. (formerly FORE). But like many of these types of transactions, the retail market saw a substantial decline from highs of $16.73 at the time of the acquisition to lows this month of $4.62. Nevertheless, the market continues watching P3’s emergence as a player in the population health management industry.
Earlier this month, William Blair initiated coverage on the penny stock. The firm started with an Outperform rating as P3 expanded into the California market with the acquisition of Medcore HP and Omni IPA Medical Group.
PIII Stock Insider Buying
Michael Balkin, a 10% owner and manager of Foresight Sponsor Group, purchased 15,000 shares this week. According to footnotes in a recent 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.”
3. Pixelworks Inc. (NASDAQ:PXLW)
While it hasn’t traded very actively this year, Pixelworks was a big focus point for traders last summer. PXLW stock surged from under $3 to highs of $7.90, thanks to a surge in visualization-tech stocks. The company provides content creation and video delivery solutions for enhancing visual quality on different screen types.
The latest slump in the market has impacted broader tech, with Pixelworks feeling some pressure in January. However, heading into the new month, there’s some refreshed interest in the stock. This comes after analysts at Colliers Securities upgraded PXLW stock to a Buy and set a $5 price target. It also came in tandem with news that the company would release full 2021 results next week. According to preliminary guidance, Pixelworks expects Q4 revenue between $16 million and $17 million.
“The fourth quarter is shaping up to be another solid quarter, further extending our sequential and year-over-year revenue growth,” commented Todd DeBonis, President and CEO of Pixelworks. “Moreover, we are entering the new year with increasing momentum and expanded engagements with tier-one mobile OEMs, which we expect to drive better than seasonal results for the first quarter of 2022.”
PXLW Stock Insider Buying
This week, CFO Haley Green reported purchasing 2,794 shares of PXLW stock. The average purchase price was $2.5585 and brought the total holdings for Green to 190,351.
4. Performant Financial (NASDAQ:PFMT)
Fintech has become a popular buzzword in the stock market today. Whether it’s discussing the latest decentralized “DeFi” finance, cryptocurrency, NFT, etc., or traditional financial technology, investors are taking notice of the trend. Performant Financial falls into this category, taking an analytics approach. It offers audit and recovery solutions for its clients and leverages technology to do so.
Most recently, Performant has placed a particular focus on advancing its healthcare operations. It works with healthcare payers through claims auditing and coordination-of-benefits services to account for improper payments. From government to commercial, Performant provides solutions to an array of clients.
PFMT Stock Insider Buying
January was an active month for insider buying. One group, in particular, accounted for the purchases. Four Form 4s were filed between January 12th and 31st by Prescott Group Capital Management. More than 1.3 million shares were purchased at average prices ranging from $1.89 to $2.06.
5. Vaccinex Inc. (NASDAQ:VCNX)
This list of penny stocks has plenty of biotechs on it. Vaccinex is another to add to it. The company develops antibody treatments for cancer and neurodegenerative disease. Earlier this year, the company reported two complete responses in the 1st three patients enrolled in a Phase 1b/2 KEYNOTE-B84 study of its pepinemab lead treatment. Combined with Keytruda in patients with recurrent or metastatic head and neck cancer, the company revealed that initial responses were positive in 2 of the patients.
“The KEYNOTE-B84 study is accruing patients in the now open expansion phase which will enroll up to an additional 62 patients in approximately equal groups of patients with CPS 20 and CPS ≥20 across 18 U.S. trial sites. We look forward to sharing further results at a medical conference as the study progresses, with interim analysis around the midpoint of enrollment (2H 2022).”Maurice Zauderer, Ph.D., President and Chief Executive Officer of Vaccinex
VCNX Stock Insider Buying
A series of insider trading reports came out at the end of January. CEO Maurice Zauderer and directors Albert & Hacon Friedberg reported purchasing more than 5 million shares in the company’s recent private placement. The offering price for this placement was $1.11 per share.
Should You Buy What Insiders Are Purchasing?
There isn’t a failsafe that guarantees a winning investment if insiders buy. However, adding this topic to your research strategy doesn’t hurt. At the very least, you’ll see if management or large holders are putting more skin in the game around the same time you’ve added the stocks to your watch list.
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