Many have taken an interest in penny stocks over the last year. By definition, this term refers to stocks that trade under $5. Inherently these stocks are very risky and volatile in nature. This can be a good thing or a bad thing, depending on your experience level. What we do know is that there has been plenty of penny stock success stories. These can often move up or down 50-100% in a single trading session.
The market for biotech penny stocks has been very active in the last year. The pandemic brought a lot of new attention to the sector that was not there previously. Currently, penny stocks in this sector are still being driven by a lot of that momentum. One other thing impacting these stocks is the new trend of retail or, as what people now like to call “Reddit traders.”Reddit Penny Stocks Remain A Focus
What started as a trend with GameStop (NYSE: GME) became a market phenomenon that has extended its reach to multiple industries & sectors, including biotech. There are a few things you should look out for when investing in penny stocks. The ideal investment is one in which the company has strong financial backing and notable market history.
Look at a company’s financial reports, cash flow, debt ratio, and more to consider before investing. Acquisitions have also become a common thing in the world of small-cap companies. A buyout could result in huge gains for investors.Hot Biotech Penny Stocks To Buy [According To Analyts]
As the biotech sector continues advancing, it is expanding the market even more. Many corporations are making significant trial progress, getting FDA approvals, and reporting positive news. The hype for penny stocks in this sector continues to increase due to how captivating it has been over the last year. Only time will tell which company could be the next Moderna (NASDAQ: MRNA) or Pfizer (NYSE: PFE) in terms of growth. One thing we can say for certain is that analysts have grown bullish on several biotech companies. Let’s have a look at four that have just recently moved higher in the stock market this week.
- Agenus Inc. (NASDAQ: AGEN)
- Arbutus Biopharma Corporation (NASDAQ: ABUS)
- MannKind Corporation (NASDAQ: MNKD)
- Hepion Pharmaceuticals Inc. (NASDAQ: HEPA)
Price Target: $8
This first biotech penny stock to buy, according to analysts at B. Riley, is Agenus Inc. The firm also has a price target of $8. Based on the closing price of $2.87 on April 1st, that puts their AGEN stock forecast price 178% above current levels.
This company has experienced a lot of positive momentum in the market recently. Agenus focuses on developing immune-oncology products. Many of these are antibody and vaccine-based. On March 15th, Agenus provided a corporate update and its fourth-quarter and full-year financial report. Some of its advancements include completed filings and clinical data.
The CEO of Agenus, Garo Armen, Ph.D., said, “2020 was a pivotal year for Agenus, marking the beginning of our transition to a commercial company with the initiation of our rolling BLA filing for balstilimab monotherapy. We also reported positive data on multiple programs.”What To Watch With AGEN
Balstilimab accelerated approval in second-line cervical cancer is expected to be a significant milestone in the transition to a commercial company. As we’ve seen many times in early-stage biotechs, the real proving ground is getting treatments to market. As a key inflection point for Agenus’ combinations strategy, this could be an important time for the company and the market.
Looking ahead to Q2, another pipeline treatment, AGEN1777, is expected to have an investigational new drug filing made. A Phase 1 study will follow in Q3, according to the company. The treatment is designed to improve anti-tumor activity.
Let’s take a look at some very basic technical levels on the chart. If you’re looking for some historic areas for AGEN stock right now, this week’s action appears to be around the same levels that the penny stock traded around in May of 2020. It also tested this area in late July as well as in early March. Will the latest trend see AGEN push back above this level, or will it fail once more in April?Penny Stocks To Buy [According To H.C. Wainwright]: Arbutus Biopharma Corporation (NASDAQ: ABUS)
Price Target: $10
Another one of the penny stocks to buy right now, according to H.C. Wainwright, is Arbutus Biopharm. Its $10 price target represents an ABUS stock price forecast of 191% based on the closing price on April 1st. The biotech company has experienced a lot of positive progress over the last few months. The company develops and commercializes treatments for patients with Hepatitis B.
Arbutus recently announced a new advancement on March 16th. It received regulatory approval to start a Phase 1a/1b clinical trial with AB-836. This is an oral capsid inhibitor to treat chronic Hepatitis B.
The Chief Scientific Officer of Arbutus said, “Based on pre-clinical studies with AB-836, which is derived from a novel chemical series in this class, we believe it has the potential for improved clinical efficacy and safety as well as a favorable resistance profile relative to earlier-generation capsid inhibitors.”What To Watch With ABUS
This week was a big one fundamentally for the company. Arbutus announced a research and licensing agreement with X-Chem, Inc. and Proteros biostructures GmbH. The agreement focuses on discovering novel inhibitors targeting the SARS-CoV-2 nsp5 main protease and is designed to accelerate the development of pan-coronavirus agents to treat COVID-19.
The company explained that the goal is identifying unique and pan-coronavirus assets targeting the main coronavirus protease in combination with assets identified from the program targeting the SARS-CoV-2 nsp12 viral polymerase. Ultimately, the hopeful outcome is to deliver an all-oral antiviral treatment for SARS-CoV-2 and any potential future coronavirus outbreaks.
Similar to AGEN, ABUS also has some historic levels to look at. In this case, the penny stock traded around this area last September and October, testing it as an upper resistance point, which it failed to break above. Since then, ABUS stock has tested the same level as support in November, December, January and broke below it this March. Thursday marked the latest session where this level was tested. It will be interesting to see if it acts as resistance once again or if ABUS can break up and through.Penny Stocks To Buy [According To BTIG Research]: MannKind Corporation (NASDAQ: MNKD)
Price Target: $8
BTIG Research says MannKind Corp is one of the biotech penny stocks to buy. Its $8 price target also suggests an MNKD stock forecast 92% above current trading levels. It has had quite a good 2021 so far. MannKind Corporation develops and commercializes inhaled therapeutic products. These are used to treat patients with diabetes and pulmonary arterial hypertension issues.
In February, MNKD stock saw a huge uptick from $3.50 to highs above $6 at one point. Last month MNKD stock pulled back to as low as $3.12. In the last week, this penny stock seems to be back on track. From March 26th to April 1st MNKD stock went from $3.65 to highs of $4.33 on April 1st.
Its most recent advancements begin with the company participating in the 2022 Medicare Part D Senior Savings Model to make insulin more affordable for patients. MannKind launched AfrezzaAssistSM, which helps facilitate patient access to affordability programs. These programs include a co-pay assistance program for commercial insurance patients, which lowers copays to as little as $15.What To Watch With MNKD
What’s could also be interesting to follow is any progress made after the company’s QrumPharma acquisition. This added a nebulized version of clofazimine to MannKind’s pipeline of therapies for orphan lung diseases. The company also entered into a collaboration agreement with Vertice for the co-promotion of Thyquidity, indicated for hyperthyroidism expected to expand the company’s reach into endocrine diseases.
So, in light of numerous potential milestones and BTIG’s MNKD stock forecast, this could be one of the penny stocks to watch this month.
We’ll stick with the basics here and look for simple, historic levels. In this case, MNKD stock made a similar move in December as it has this past week. However, the previous move failed to break above the area around $4.20. The April 1st session saw MNKD stock price jump to highs of $4.33 but ultimately closed below $4.20. Looking ahead, it will be interesting to see if this level acts as resistance in April.Penny Stocks To Buy [According To Roth Capital]: Hepion Pharmaceuticals Inc. (NASDAQ: HEPA)
Price Target: $8
Roth Capital gave a buy rating and $8 price target to Hepion Pharmaceuticals. Based on the closing price from April 1st, the firm’s HEPA stock price forecast sits 302% higher right now.
Hepion focuses on developing pleiotropic drug therapies in treatments for chronic liver diseases. One of its main candidates is CRV431, a cyclophilin inhibitor that has gotten past Phase 1 of its clinical trials. Data from a recent study showed that 75 mg CRV431 dosing lowered serum transaminases from baseline. According to Hepion, this was consistent with “a beneficial effect on the liver, and that fibrosis was reduced by 47%.”
The company recently presented at the Benzinga Global Biotech Small-Cap Conference. CEO Robert Foster gave updated clinical program data for non-alcoholic steatohepatitis and other programs driven by its AI platform.What To Watch With HEPA
Its DIAMOND Mouse Model is the newest in its nonclinical studies to prove the antifibrotic effects of CRV431. It found consistent and significant antifibrotic effects in every single one of its studies. HEPA’s stock performance in the last few days is reflective of the progress the company has had. Over the last 3 days, HEPA has climbed from $1.79 to highs of $2.03 on April 1st. Also, the company closed an $88.4 million public offering. These proceeds are intended to be used to fund research and development, as well as working capital.
In Hepion’s case, there aren’t too many distinct levels, but we can see the area around $2 has been an interesting one for HEPA stock. It was a relatively consistent level of support from January into February. However, March was mixed and ultimately saw HEPA stock break below this level. Thursday’s session saw a test of the $2 mark which appeared to be a resistance level where HEPA could not break through and hold above by the closing bell.Are Penny Stocks Worth The Risk?
Obviously, analysts that say you should buy penny stocks aren’t always correct. There’ve been plenty of cases where a rating comes out, and then a stock gets completely crushed. In this sense, it’s essential to do more research than look for analyst ratings alone.
Dig through filings, look at press releases from weeks or even months ago to see if management commented on events that could matter “now,” and take a look at what the market sentiment is for a given industry. It also doesn’t hurt to look at the penny stock’s charts to see if recent levels are places where support or resistance played a larger role. At the end of the day, analysts aren’t the ones hitting the buy button, so make sure you know what you’re investing in and why.
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