Nancy Pelosi has become quite the stock market guru lately. That is if you believe everything you see on TikTok. Her tracked trading disclosures have revealed some pretty profitable trades over the years. But she isn’t the only official investing in the stock market. Today we look at three others that have placed bets on, you guessed it, penny stocks!
Penny Stocks TL;DR 30-Second Summary
When it comes to penny stocks, some see it as the “Wild West” but it doesn’t have to beUnderstanding basics can help you find top penny stocks to buy but so can doing some researchInsider trades are a big point of focus for retail trades but thanks to Nancy Pelosi, government trades are also becoming a head-turning topic in the stock marketToday we look at 3 goverment officials who decided to buy penny stocks over based on recently reported filings
Nancy Pelosi’s Latest Trades
Most recently, through her spouse, Rep Pelosi took significant positions in Alphabet (NASDAQ: GOOGL), SalesForce.Com Inc. (NYSE: CRM), Disney (NYSE: DIS), Roblox (NYSE: RBLX), and Micron Technology (NASDAQ: MU). The interesting part was that these weren’t stock purchases. Instead, she opted for the options contracts and focused on deep-in-the-money calls for each.
But the so-called “Queen of Investing” isn’t the only government rep “dabbling” in the stock market today. After doing a little digging, hundreds of government officials are buying stocks. One of the most interesting parts is that we aren’t just talking about the Alphabets or Nvidia’s of the world. Believe it or not, some officials are looking to buy penny stocks. Fortunately or unfortunately, it wasn’t Nancy Pelosi.
Penny Stocks To Watch
1. Quantum Corporation (NASDAQ: QMCO)
You’ll notice in this list of penny stocks that these aren’t your typical names. What I mean is that they aren’t the hottest stocks today or ones that are on the “most active” list as frequently as others. However, knowing is half the battle, as they say, and seeing where government officials are parking their money might be something to keep in mind.
While it is just outside of the penny stock range (under $5), I think QMCO stock may be worth noting as it hovers in the $5 range right now. Quantum Corporation is a software solution and digital technology company with a broad scope of offerings. Whether it’s storing files using its data management software suite or leveraging its surveillance & edge tech for physical security or Smart Buildings, Quantum’s portfolio is vast.
New Developments For Quantum Corporation & QMCO Stock News
This week’s latest update is yet another proof-point to that. The company announced its role in speeding up research for all-terrain autonomous vehicles at the Center for Advanced Vehicular Systems at MSU. The Center already collects data using Quantum’s R-Series Edge Storage, which will be used for analysis and machine learning model development.
“The researchers at CAVS are capturing massive amounts of data in demanding off-road environments and then using that data to design, develop, and validate algorithms that can power self-driving military vehicles. The Quantum R-Series Edge Storage enables them to store, quickly offload, and analyze the data for simulations and further research,” said Graham Cousens, ADAS/Autonomous Vehicle Solutions practice lead, Quantum.
In addition to this, it may be worth noting some of Quantum’s technology partners. With more than 80 listed on the company’s site, some notable names include Splunk, Oracle, Nvidia, NetApp, Microsoft, IBM, Dell, Cisco, Bosch, Broadcom, Amazon Web Services, Autodesk, Adobe, and plenty of others.
QMCO Stock Goverment Trades
In a Periodic transaction Report filed late last year, Florida Rep. Debbie Wasserman Schultz reported her QMCO stock transactions. The purchase amount range selected was $1,0001-$15,000. It also may be worth mentioning that just a few days before the purchase date, QMCO stock was in penny stock territory trading as low as $4.83.
2. Hippo Holdings Inc. (NYSE: HIPO)
Insurance stocks have been hot and cold over the last few months. If you’ve traded penny stocks for at least the last month, you’re probably familiar with Reliance Global Group Inc. (NASDAQ: RELI). It has grown in popularity recently, and since our first mention of it in December, RELI stock has exploded by nearly 200%. But this hasn’t been the case for all insurance stocks.
Hippo Holdings Inc. is an example of that even after gaining praise from social media influencers & potential government officials like Meet Kevin. Formally known as Kevin Paffrath, the YouTuber went as far as making a video titled “i JUST invested $600,000 into this Stock.” In it, he discussed his investment thesis about HIPO stock. Unfortunately, the downtrend in this popular social media stock hasn’t slowed. Shares reached new 52-week lows this week. So why would anyone be interested in the company right now?
New Developments For Hippo Holdings & HIPO Stock News
The home insurance company hasn’t been very active on its newswires lately. However, we may see some end-of-year speculative information from the company’s Q3 report. In a shareholder letter, Assaf Wand, Founder, and CEO of Hippo, discussed strong performance from the quarter. It was strong enough to raise guidance for the end of the year.
“Reflecting our strong performance in Q3 and our expectations of continued momentum in Q4, we are raising our 2021 guidance for Total Generated Premium from the $560 to $570 million we shared last quarter, to $600 to $605 million.”
HIPO Stock Goverment Trades
Illinois Representative Marie Newman filed her latest trades in an early December Periodic Transaction Report. Among names like Amazon, Apple, and Coinbase, Hippo Holdings was a new holding of her spouse. Similar to Wasserman Shultz, Newman reported purchase amounts of $1,001 – $15,000.
3. NGL Energy Partners (NYSE: NGL)
If you’ve followed energy stocks lately, you’re well aware of the volatility in the market right now. The last few weeks have seen a strong push higher for oil prices. But Friday’s action is a stark opposite of that trend. Amid economic recovery paired with virus fears, prices have wobbled. But that hasn’t stopped traders from buying energy stocks and speculating on a more robust global economy in 2022.
NGL Energy Partners stock has mimicked the overall industry trend somewhat. The penny stock has climbed nearly 20% so far this year. NGL is a midstream energy company that handles logistics services for crude, natural gas, and other liquids. It also transports and disposes of water generated from drilling processes. With a focus on Environmental, Social, and Governance – ESG – initiatives this year, many companies focusing on the energy industry’s ESG plans are a focus.
New Developments For NGL Energy Partners & NGL Stock News
There haven’t been many new headlines from the company. However, speaking of ESG initiatives, one of the highlights of NGL’s most recent earnings was its water solutions business. According to the company, “Produced water volumes processed increased approximately 37% versus the same period in the prior year, with volumes growing approximately 94,000 barrels per day, or 5.6%, versus the preceding quarter.”
In addition, insiders of NGL have also added some speculation to market trends. Both EVP John Ciolek and CEO Michael Krimbill purchased shares of NGL stock before the end of the year. The two purchased 45,000 and 100,000 shares, respectively, at average prices ranging from $1.9444 – $1.9475.
NGL Stock Goverment Trades
Unlike other names on this list, the government official trading NGL stock reported the last trade as a sell. However, a look at the history of activity shows that this is a more active position for the representative.
As reported earlier this week, Rep Mark Edwar Green from Tennessee showed his activity in NGL stock. In November, he purchased $15,0001 – $50,000 and in December, he reported the sale of $15,001 – $50,000. Despite the latest trade being a sell order, if you look at the last few months of Rep. Green’s activity in NGL specifically, he has been buying. This includes purchases reported for $100,001 – $250,000 last January.
Penny Stocks & Government Trading
Like penny stocks with insider buying, a “follow the money” strategy is 1 part of a broader due diligence process. It’s great to see where insiders and officials are parking their money. Since you’re the one deciding whether or not to buy, doing as much research as possible is warranted. Are any of these on your list of penny stocks to watch this year?
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