Is It Good To Invest In Penny Stocks? Insiders Say Yes With Over $3M (2024)

If you’re new to trading penny stocks, I’m sure you’ve got plenty of questions. One of those is probably something along the line of “Is it good to invest in penny stocks?”

Everyone’s experience with cheap stocks will yield different answers. But if you ask someone who’s consistently traded and made money with stocks under $5, they’ll tell you the answer is “Yes…but.” Here are some of the answers you will find:

Q. Is it good to invest in penny stocks?

1. A1. Yes, but you need a plan.
2. A2. Yes, but you need to do your research.
3. A3. Yes, but you need a trading strategy.
4. A4. Yes, but you must first know how to trade penny stocks.
5. A5. Yes, but you need to know how to handle risk & volatility

The overall goal is to make money with cheap stocks. Whether that happens in a day or over a year, when your profit targets are hit, it’s time to act on your game plan. That can happen much more quickly with penny stocks than with higher-priced stocks.

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Penny Stocks To Watch

In this article, we’re not only going to be looking at cheap stocks. This article focuses on the best penny stocks to buy now, according to company insiders. Altogether, these insiders and large shareholders purchased millions of dollars worth of these penny stocks during August. Once you see who’s buying and what’s happening with these companies in the stock market today, you can decide if they’re suitable for your watch list or not.

Astrotech Corporation (NASDAQ: ASTC)

Shares of biotechnology and health-related companies have seen stronger momentum this week. Astrotech is one of these companies, and as you’ll see on any ASTC stock chart, its price has enjoyed a solid 3-day move. With some of its highest one-day volume all year on August 25th, some are wondering what’s going on with Astrotech right now.

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The last update was on August 24th but only announced plans to hold a shareholder meeting and when it would send proxy documentation (next month). Other than that, not much has come from the company regarding news since June. That was when Astrotech’s subsidiary, BreathTech, amended a joint venture with Cleveland Clinic to include areas of focus beyond screening for COVID-19 and include other diseases involving bloodstream infections.

Following The Money With ASTC Stock

During the August 25th session, 10% owner Braden Leonard, via BML Investment Partners, reported the purchase of nearly 480,000 shares of ASTC stock. Average purchase prices ranged between $0.42 and $0.483, with the trades made on August 23rd and 24th.

Porch Group Inc. (NASDAQ: PRCH)

This week, the software company Porch Group gained some attention in the stock market thanks to insider activity. It also reached several critical milestones that have culminated in a multi-day move of over 20%.

The company earned a 2022 Great Place to Work Certification. According to Porch, 77% of its employees said it was a great workplace. It also announced that its business unit, Porch Pro, and MarketSharp of EverCommerce (NASDAQ: EVCM), inked a software integration targeting contractors.

Andrew Beck, Vice President and Group GM of Contractor Tools, Porch Group, explained, “This integration allows Porch Pro to connect millions of homeowner project requests with more contractors and makes it simpler for MarketSharp customers to find and book more jobs.”

Following The Money With PRCH Stock

COO Matthew Neagle raised some eyebrows this week after reporting his insider trading activity. Neagle grabbed 100,000 shares of PRCH stock at an average price of $2.1976 on August 22nd. This brought his total holdings to more than 763,000 shares.

F45 Training Holdings Inc. (NYSE: FXLV)

We discussed F45 Training earlier this week in a similar article: 4 Penny Stocks Insiders Spent Millions To Buy In August 2022. The company, most notable for its big investors, including Mark Wahlberg, hasn’t faired as well as some would’ve imagined. Since its IPO, FXLV stock is far from its debut highs, but that hasn’t meant it’s a nonstarter for some insiders.

The performance training company and “45-minute workout” fitness programmer has seen millions in insider trades made this month. This week, Director and 10% owner Kennedy Lewis Management LP grabbed over 1.21 million shares between August 18th and 19th. Another Form 4 filed on Wednesday showed the firm added to its stake a few days later.

Following The Money With FXLV Stock

Once again, Kennedy Lewis ordered up a multi-million dollar trading flurry. This time it was between August 22nd and 24th. The firm snagged over 1.4 million shares worth $3.23 million. Board member Darren Richman co-founded Kennedy Lewis with David Chene in 2017. He also holds Board seats at Vemo Education, Eastman Kodak, and Outward Bound USA.

22nd Century Group Inc. (NASDAQ: XXII)

With marijuana stocks heating up in the stock market today, it makes sense that 22nd Century might be getting some sympathy momentum from the trend. Besides low nicotine cigarettes, the company uses plant breeding technologies to deliver solutions for the life science and consumer product industries, including hemp & cannabis. 22nd Century also acquired a hemp and cannabis extraction company, GVB Biopharma, in May, which is expected to double total revenue and bring related products into the portfolio.

This week, it announced that its VLN® King and VLN® Menthol King reduced nicotine content cigarettes were awarded Best New Product in the cigarette category by Convenience Store News.

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Following The Money With XXII Stock

You won’t find an associated Form 4 from XXII stock. But you will find a fund manager filing as an amended 13G from ETF Managers Group. This is the same firm with cannabis-related ETFs, including Alternative Harvest ETF (MJ), U.S. Alternative Harvest ETF (MJUS), Daily Inverse Alternative Harvest ETF (MJIN), and a leveraged 2x Daily Alternative Harvest ETF (MJXL).

The amendment showed ETF Managers reported a 5.08% stake with an aggregate 12.09 million share position. It was nearly double the amount reported on its previous Schedule 13G in May

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