Penny stocks are a great way to quickly make money in the stock market. Today we are looking at a handful that insiders including top management have decided to scoop up as the second quarter begins. The topic of stocks with insider activity has become a bigger point of focus for traders as they look to gain an edge over the masses.
Why pay attention to what company management or larger investors are doing?
It all has to do with “following the money” and “betting” on the notion that insiders know “something” that the rest of the market doesn’t. Whether or not that actually is the case, it’s still worth noting the action insiders are taking and what it could mean for the future of their companies.
Penny Stocks To Watch
- Corvus Pharmaceuticals Inc. (NASDAQ: CRVS)
- The Metals Co. (NASDAQ: TMC)
- Creative Realities (NASDAQ: CREX)
Penny Stocks To Buy According To Insiders
Today is a great example of how traders can react to insiders or larger investors buying shares of a company. Earlier this morning, Twitter (NYSE: TWTR) shares exploded to new highs for the year. What was the driver? It had nothing to do with company news and everything to do with a large investor reporting a 9.2% position in the company. The “large investor” was none other than Elon Musk, Tesla’s (NASDAQ: TSLA) CEO.
When Elon Musk does any type of buying, whether it’s cryptocurrency or stock, the market tends to notice anyway. However, in this case, it is worth mentioning giving a real-time example of how bigger buying activity can impact markets. Today we look at a few penny stocks to watch that insiders have upped their stake in recently. Will they be on your list this month?
Penny Stocks To Buy [according to insiders] 1: Corvus Pharmaceuticals Inc. (NASDAQ: CRVS)
Corvus was a huge winner last year for traders looking to capitalize on speculative trading. The company specializes in oncology therapy development. When AstraZeneca’s data from a non-small cell lung cancer treatment came out favorable, sympathy sentiment triggered a move in several companies with exposure to such types of treatments. Since then, CRVS stock has steadily slid lower until recently.
In a business update, the company discussed its clinical pipeline plans including accelerating the development of its CPI-818 for T cell lymphomas. “We have established sound scientific foundations for our product candidates, which give us confidence as we initiate mid-stage clinical trials in front-line treatment of lung cancer and renal cell cancer,” explained Corvus CEO Richard A. Miller, M.D. in the March update.
CRVS Stock Insider Buying
What do insiders think about CRVS stock right now? CEO, Richard Miller, and CFO Leiv Lea have been purchasing shares of Corvus since mid-March. Miller purchased a total of 45,000 shares between March 15th and March 31st at average prices ranging from $1.466 and $1.6356. Meanwhile, Lea picked up just over 49,000 shares of CRVS stock at average prices of $1.54 and $1.65.
The Metals Co. (NASDAQ: TMC)
Metals and mining stocks have become a much larger focus recently. The government sanctions on Russia as well as a broader focus on energy metals have helped drive market momentum heading into the second quarter. The Metals Co. is at the center of both crossroads as EV stocks tick higher and metals prices rise at the start of the week. In fact, a more sweeping trend in electric vehicle stock momentum has put a broader focus on raw material stocks.
Where does The Metals Co. come into play? It specializes in a very particular type of metals recovery. Its seafloor nodule collection process looks to recover critical materials used in the green energy industry. Nickel, manganese, copper, and cobalt are all required for building renewable energy systems. These are also the metals TMC looks to recover utilizing this platform.
Last week the company’s CEO released a letter addressed to Senators Joe Manchin and John Barrasso in response to a recent hearing on critical mineral supply chains. TMC’s Gerard Barron discussed several key topics related to the initiative. He also pointed out that he believes “that sustainable and safe collection of polymetallic nodules from the relatively close Clarion Clipperton Zone can provide a clear opportunity to address the heart of the issue. As one of the most advanced participants with knowledge of this emerging technology, we look forward to working with the Committee as it continues its examination of this important issue.”
TMC Stock Insider Buying
With attention focusing on EV stocks right now, raw materials are back in focus. What’s more, insiders of TMC are purchasing stock as well. Several Form 4 filings were published showing insider buying on March 30th. TMC’s CFO, CEO, and one of its Directors purchased a total of 66,000 shares at average prices ranging from $1.7986 to $2.19. However, the larger purchase came from another one of TMC’s directors, Andrei Karkar via his Eras Capital. In total, his March 30th and 31st purchases total more than 2 million shares at average prices ranging from $2.21 to $2.46.
Creative Realities (NASDAQ: CREX)
Digital signage company, Creative Realities has experienced a slight uptick in trading activity recently. Since reporting its Q4 and full-year 2021 results, CREX stock has bounced back from its $0.799 lows.
Rick Mills, Chief Executive Officer, pointed out that “CRI’s fourth-quarter 2021 revenue was approximately $5.4 million, bringing full-year 2021 revenue to $18.4 million, which represents an increase of 8.3% and 5.6% as compared to the same periods in the prior year. Removing the year-over-year revenue generated from our Safe Space Solutions products, which we launched in response to the COVID-19 pandemic, our core digital signage revenue grew 32.2% and 20.5% in the three- and twelve-month periods ended December 31, 2021, as compared to the same periods in the prior year, despite facing supply chain difficulties.”
CREX Stock Insider Buying
With an upbeat outlook on the year, insider buying seems to have also reflected a bullish tone from management. In particular, several directors of the company, Stephen Nesbit and Donald Harris picked up more than 330,000 shares. Average prices for these trades were mostly around $0.86.
Should You Follow The Money With Penny Stocks?
Ultimately, the choice is yours when it comes to identifying the best penny stocks to buy. However, the more data at your fingertips, the better prepared you are to make those decisions. With the “follow the money” strategy, there is more to consider than how much money was spent on a trade or how many shares were purchased. You’ve also got to consider who is buying. Needless to say, large buying, small buying, etc. is worth noting as part of the overall research and due diligence process.