Do you follow the money when you’re looking for penny stocks to buy? In many cases, anyone putting together a list of stocks to watch for longer than a day is looking at more than just technical indicators. Sure, these low-priced names are well known for their ability to break out in a single day. Just look at companies like Longeveron Inc. (NASDAQ:LGVN) this week.
On Wednesday, shares closed below $3, and during premarket hours on Friday, LGVN stock has surpassed the $14 mark. If you’re a novice trader or someone who can’t stay glued to a trading platform for minutes at a time, this volatility may be hard to handle. But don’t FOMO out and get discouraged. There are plenty of other ways to put your list of penny stocks together.
One strategy used is this “follow the money” strategy I mentioned above. It’s simple but not always practical. Regardless, some see things like big money bets from insiders as a vote of confidence for a company’s future. That can also go for stocks with insider selling. How do you find insider trading information? It won’t usually be in the form of a press release.
But if you’re savvy with your SEC filing reading, then look no further than Form 4s. The purchasing entity typically files these within two business days following the transaction date. In this article, we’re looking at five penny stocks that insiders appear to have grown even more bullish on. Will they be the best ones to buy heading into December? I’ll leave that up to you to decide.
Penny Stocks To Buy In November 2021 [According To Insiders]
1. PetVivo Holdings (NASDAQ:PETV)
November has been a very active month for PetVivo Holdings. The penny stock managed to rally from under $3 at the beginning of the month to highs of over $5 a few weeks ago. The company’s recent quarterly report shed some light on the outlook and corporate focus for the rest of the year. In particular, the medical device company’s CEO John Lai explained the action items in motion following PetVivo’s recent public offering:
“The most significant event from last quarter was raising $9,781,000 in net proceeds in our registered offering…We ended the quarter with cash of over $8.8 million…We are using the net proceeds from this offering to expand our sales and marketing efforts to gain vet acceptance and generate revenue from the sale of Spryng.“
The company also engaged a new advertising partner, Kick, to help spring marketing momentum. In addition to the insider trading this month, PETV could be one of the penny stocks to watch.
Are Insiders Buying PETV Stock?
There’s been a series of insider filing for the last few months, including earlier this month. However, one of the larger purchases came in September and October, with Director James Martin adding to his growing PETV stock position. As of Martin’s most recent Form 4, his holdings in PETV are now more than 86,000 shares. You can see all of the details of these Form 4s and other PETV stock filings here.
2. Compass Therapeutics (NASDAQ:CMPX)
Shares of Compass Therapeutics have been much more active in November. That’s thanks, in part, to a recent uplisting to the Nasdaq exchange. Kicking things off in November, the company announced its plans, including a $125 million offering in conjunction with its Nasdaq debut. Since then, the stock has been much more active.
Compass develops cancer therapeutics with an anti-tumor response as its target. Its CTX-009 platform has demonstrated potential across a broad range of solid tumors. The company also plans to submit an Investigational New Drug Application to the FDA in the fourth quarter of 2021. Subject to the IND clearance, there are also plans to begin a Phase 2 study in 2022 in the US. In addition, Compass’ CTX-471 platform is in a Phase 1b dose-escalation study in 36 patients with 13 different tumor types. One patient has been treated for more than one year with a positive response. This study is expected to finish during the first half of next year.
Are Insiders Buying CMPX Stock?
This month, OrbiMed Advisors and Carl Gordon filed Form 4s showing participation in uplist via the associated offering. Gordon is also the co-head of Global Private Equity of OrbiMed. Ultimately, the Advisory firm picked up millions of dollars in the offering at the $3.50 price. You can see all of the details of these Form 4s and other CMPX stock filings here.
3. Liquidia Corporation (NASDAQ:LQDA)
Another one of the biotech penny stocks to watch is Liquidia Corporation. The company specializes in developing treatments for hypertension and utilizes its PRINT technology to advance its portfolio of candidates. Liquidia developed YUTREPIA, which is an inhaled powder user for treating pulmonary arterial hypertension.
This week CFO, Michael Kaseta gave a corporate update at the Jefferies Virtual London Healthcare Conference. This seems to have helped LQDA stock continue its bullish trend in the stock market this quarter, with shares climbing over 80% so far. Toward the start of the month, Liquidia had its Prescription Drug User Fee Act date for YUTREPIA. The FDA ultimately granted tentative approval for the treatment. Now the focus is on pre-commercial launch activities in anticipation of an official rollout by the company.
Are Insiders Buying LQDA Stock?
This month, Director Arthur Kirsch and General Council Russell Schundler bought shares of LQDA stock. Kirsch picked up 30,000 shares at an average price of $4.24, while Schundler snagged just under 118 thousand at an average price of $4.21. You can see all of the details of these Form 4s and other LQDA stock filings here.
4. Orbital Energy Group (NASDAQ:OEG)
Orbital Energy has experienced a mixed month so far. With the shifting winds in the energy industry, volatility has become a factor to be well aware of. However, unlike traditional oil and gas, the company has taken a more diversified approach. In fact, Orbital has focused on renewables like solar power and even advancing its infrastructure capabilities.
This week the company announced its latest acquisition. Orbital purchased Front Line Power Construction to provide solutions for electrical infrastructure development. What’s more, the transaction is expected to be immediately accretive to Orbital, with the combined company revenue expected to surpass $300 million for 2022. Thanks to a renewed interest in infrastructure development stemming from the latest trillion dollar bill, companies like Orbital have come back into the spotlight during the end of the year.
Are Insiders Buying OEG Stock?
There was a slew of Form 4s this month for Orbital Energy. However, the most recent from James O’Neil, the company’s CEO, is the one we’re looking at right now. The main reason is that the previous Form 4s referenced compensatory shares and not ones purchased in the market with cold hard cash. O’Neil’s filing shows the CEO picking up 20,000 shares of OEG stock at an average price of $2.502, bringing his position to over 664 thousand shares. You can see all of the details of these Form 4s and other LQDA stock filings here.
5. OpGen Inc. (NASDAQ:OPGN)
Finally, OpGen rounds out our list of penny stocks with recent insider buying. The company specializes in developing candidates to address infectious diseases. OpGen received FDA clearance for its Acuitas AMR Gene Panel, allowing for testing of different AMR markers. It also began significant marketing and sales campaigns across institutions in the US following this clearance. Furthermore, its Ares Genetic subsidiary recently launched the AREScloud web application for speeding up analysis of different clinical isolates and is collaborating with several U.S. hospitals to assess the platform for use in outbreak analysis.
Thanks to the latest $15 million raise, the company has the proceeds necessary to propel its Acuitas commercial launch in addition to repaying certain debt obligations. These details were revealed in the company’s Q3 business update earlier this month.
Are Insiders Buying OPGN Stock?
This week the latest Form 4 was filed, showing CEO Oliver Schacht purchased 10,000 shares of OPGN stock at an average price of $1.496 this week. The buy added to his direct holdings and brought that figure to 30,000, according to the filing. You can see all of the details of these Form 4s and other OPGN stock filings here.
Should You Follow The Money?
These are just a few penny stocks to watch with insider buying. Keep in mind what we discussed earlier. Just because management and directors are purchasing shares, that isn’t the sole thing to base your investment thesis on. However, it is something to keep in mind as you continue your diligence on specific companies.