Whether you’re looking for a Santa Claus Rally or trying to find some tax-loss harvesting opportunities, omicron fears have slapped the market in the face to start the short holiday week. Over the weekend, concerns began to grow thanks to commentary from the scientific community. These were based on a potential virus wave heading into the winter months.
Event companies are postponing or canceling events. Meanwhile, large organizations like The World Economic Forum have paused the annual January meet-up of world leaders, billionaires, and industry executives. Once again, this was thanks to increased caution due to rising virus cases.
Does this mean it’s time to run for the hills? Those of you who’ve been long-time readers know that’s never the case. There are always new opportunities in the stock market, and today penny stocks are on the radar. Despite their higher risk profiles, cheap stocks tend to move unlinked to broader market trends. In light of this, we’re not only looking at a few penny stocks trading higher right now. We’re also looking at ones that insiders are buying right before the end of the year.
Penny Stocks To Buy According To Insiders
Penny Stocks To Buy #1: XpresSpa Group Inc. (NASDAQ: XSPA)
With rising virus cases and the holiday travel season upon us, XpresSpa Group could be one of the more interesting companies to follow. That’s because the company that was better known as an in-airport spa has shifted its model to leverage the positioning in the top airports in the country. In particular, its XpresCheck business offers virus testing options, including PCR and rapid PCR tests via 14 locations in 12 airports. Considering the number of people set to travel over the next few weeks and rising case numbers, this could be something to consider if XSPA stock is on your list of penny stocks right now.
Recent XSPA Stock News
Thanks to increased concern, XSPA stock has rallied since mid-November. The company and Concentric by Ginko Bioworks (NYSE: DNA) confirmed the first collected and sequenced samples of the new omicron variant. These came from flights originating from South Africa arriving at Newark Liberty International Airport earlier this month.
Read more: 5 Penny Stocks To Buy For Under $5 This Week
“Early detection and sequencing of new variants entering the United States are crucial to our ability to better understand the virus and assess the threat it poses to public health,” said Dr. Duncan MacCannell, Chief Science Officer for CDC’s Office of Advanced Molecular Detection (OAMD). “These first US BA.3 sublineages detected through the traveler-based surveillance program provide insight about the Omicron variant to public health agencies, and expand our understanding of travel-related transmission of SARS-CoV-2 variants.”
XSPA Stock Insider Activity
Similar to other companies on this list, insiders are actively scooping up shares of XSPA stock. Most recently, Director Bruce Bernstein grabbed 37,500 shares at average prices ranging from $1.65 to $1.71. These purchases brought Berstein’s direct holdings to over 700,000 in the latest Form 4 filing.
2. Venus Concept Inc. (NASDAQ: VERO)
Shares of Venus Concept mirrored a similar trend this quarter as Accelerate. The significant bearish catalyst came in early November after the company tightened its expectations for the year. Global supply chain issues related to the virus resulted in a backlog for customer purchase orders. Compounding the bearish sentiment in the market was a $17 million equity financing update where Venus issued over 3.7 million shares at $1.25 to raise funds.
“This equity financing provides Venus Concept with the requisite capital to advance our strategic growth initiatives, including our efforts to develop the next generation robotic technology platform for medical aesthetic applications,” said Domenic Serafino, Chief Executive Officer and Director of Venus Concept Inc. Venus specializes in minimally invasive and non-invasive medical aesthetic and hair restoration technology.
VERO Stock Insider Activity
While the financing was the most recent headline to follow the mixed earnings release, take a look at Venus’ filings, and you’ll see some other events have occurred. Importantly, insiders, including directors and 10% owners, bought millions of dollars worth of stock. All average prices were at the recent offering price of $1.25 if you look at the details from the latest VERO stock filings.
Penny Stocks To Buy #3: Accelerate Diagnostics Inc. (NASDAQ: AXDX)
The last few sessions have seen Accelerate Diagnostics rebound. Shares reached fresh 52-week lows of $4.01. An initial drop came last month thanks to mixed earnings thanks to the virus impacting Accelerate’s commercial strategy. The company is an in vitro diagnostics company providing solutions for antibiotic resistance and sepsis. Its product portfolio includes Accelerate Pheno and Accelerate PhenoTest BC kit. These are designed to help clinicians determine optimal antibiotic therapy for different infections.
Recent AXDX Stock News
Despite a slower third quarter, Accelerate has made recent progress. Late last month, the company announced that its Accelerate Pheno system showed a reduction in time to optimal therapy. The company’s published results from a multi-center study compared data before and after Accelerate Pheno was implemented.
Jack Phillips, CEO, said that “This landmark study further corroborates the findings of over 70 previous peer-reviewed clinical studies. We are honored that the Pheno System is becoming the standard of care in so many prominent hospitals, and that they are realizing the medico-economic benefits of offering optimized antibiotic treatment days earlier than they could before.”
Data from the study was published in the journal Clinical Infectious Diseases.
AXDX Stock Insider Buying
Even in light of the pullback and period where tax loss harvesting is prevalent, insiders are buying shares of the beaten-down medical tech company. Most recently, company director and 10% owner through his trust, Jack Schuler, purchased 17,050 shares at an average price of $4.38 on December 15. This brought his total indirect holdings via Jack W. Schuler Living Trust to 18,301,963, according to the December 17 filing.
4. Amneal Pharmaceuticals Inc. (NYSE: AMRX)
Amneal develops generic and specialty pharmaceuticals mainly in the US. With roughly 250 products in its generics business, the company offers a broad range of therapeutics ranging from injectables to biosimilars. Its specialty business includes branded products for the central nervous system and endocrine disorders.
Recent AMRX Stock News
A few headlines have recently offered mixed responses in the stock market. Initially, the company received approval last month for its difluprednate ophthalmic emulsion. This is the generic version of Durezol®, used to treat inflammation and pain associated with ocular surgery. According to IQVIA®, U.S. annual sales for Durezol® and its generic equivalents in the 12 months ended September 2021 were approximately $103 million.
“With the approval of difluprednate, a complex ophthalmic suspension product, we continue to shift our portfolio to increasingly complex and more differentiated product areas. The wheel of innovation constantly turns at Amneal, and we see a long runway for our R&D engine,” said Chirag and Chintu Patel, Co-Chief Executive Officers.
Earlier this month, Amneal entered into a settlement in US patent litigation with TherapeuticsMD (NASDAQ: TXMD). This added more pressure early in December, but the most recent developments seem to have brought back some positive sentiment.
AMRX Stock Insider Activity
If you look at the latest Form 4 filings for AMRX, you’ll see what I’m referencing. Co-CEOs Chirag and Chintu Patel bought several hundred thousand dollars worth of AMRX stock. Shares were purchased at average prices ranging from $4.13 to $4.25.
Are Penny Stocks On Your List Right Now?
Something to remember right now is we’re still talking about penny stocks. These cheap shares pose a higher risk/reward potential. What’s more, just because insiders are buying, that doesn’t mean that you must follow suit. It’s worthwhile to take time to research companies from all angles. If you “follow the money,” it may be best to use that as one piece of a much broader focus before making a final decision. Needless to say, heading into year-end, it is an interesting theme to follow in light of everything going on in the stock market right now.