In this article, we discuss the 10 best penny stocks popular on Reddit.
Internet forums like Reddit have opened up the stock market to a new generation of investors who come from all types of different backgrounds, diversifying the marketplace and resulting in a flurry of new investments into equities. In late July, Goldman Sachs analyst David Kostin told investors in a research note that the retail favorite stock list of the investment bank had outperformed the benchmark S&P 500 Index by 3 percentage points in June, an indicator of the ever-growing power of retail investors on the overall market dynamics.
Some of the stocks presently popular on Reddit include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), among others. However, for those not interested in these pricey options, there are several penny stocks popular on the internet platform, some of which are discussed below. Penny stocks are popular on the platform because many retail investors operate on limited budgets and are not averse to risk-taking.
Smart investors can gather valuable insight from the trends related to the penny stocks and their impact on the market, especially with regards to meme stocks and high volume trades that have exploded in popularity over the past few months. As more money is poured into the market, volatility has been high, but for those who can turn profits from diligent research into penny stocks, playing the game with the big boys becomes that much easier. It is fair to say that retail investors have delivered a rude awakening to the world of big finance in recent months.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 best penny stocks popular on Reddit. These were ranked keeping in mind the number of mentions on Reddit, analyst ratings, hedge fund sentiment, and basic business fundamentals.
Best Penny Stocks Popular on Reddit
10. Farmmi, Inc. (NASDAQ: FAMI)
Number of Hedge Fund Holders: 2
Price as of August 3, 2021: $0.45 per share
Farmmi, Inc. (NASDAQ: FAMI) is a Chinese firm that processes and sells agricultural products. It is placed tenth on our list of 10 best penny stocks popular on Reddit. The company has a market cap of over $70 million and posted more than $30 million in revenue last year. On May 13, the share price of the firm jumped more than 7% after it announced that Zhejiang Forest Food, a subsidiary of the firm, had been awarded a mushroom export order to Israel.
On June 23, Farmmi, Inc. (NASDAQ: FAMI) announced that it had entered into an agreement with Sigma Holding as part of a plan to expand into the distribution network of agricultural products. The strategic and cooperation agreement envisions the joint establishment of a new firm and a 50-year partnership between the sides.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $507,000 in Farmmi, Inc. (NASDAQ: FAMI), up from 1 in the previous quarter worth $858,000.
Alongside Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Farmmi, Inc. (NASDAQ: FAMI) is one of the stocks popular on Reddit.
9. Pintec Technology Holdings Limited (NASDAQ: PT)
Number of Hedge Fund Holders: 2
Price as of August 3, 2021: $0.96 per share
Pintec Technology Holdings Limited (NASDAQ: PT) is placed ninth on our list of 10 best penny stocks popular on Reddit. The firm markets financial technology services and is based in China. It has a market cap of over $39 million and posted more than $57 million in revenue last year. In December last year, the firm had announced that it would be partnering with China Mobile Communications to develop a joint project related to advanced fintech solutions. The project would make use of big data analytics and artificial intelligence technology.
In April this year, Pintec Technology Holdings Limited (NASDAQ: PT) stock soared 30% after it announced that it had entered into an agreement for the purchase of Shenzhen Jishengtai Technology, a technology company that markets security solutions, in an all-stock deal.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $141,000 in Pintec Technology Holdings Limited (NASDAQ: PT), down from 3 in the previous quarter worth $129,000.
Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Pintec Technology Holdings Limited (NASDAQ: PT) is one of the stocks popular on Reddit.
8. Ever-Glory International Group, Inc. (NASDAQ: EVK)
Number of Hedge Fund Holders: 2
Price as of August 3, 2021: $5.08 per share
Ever-Glory International Group, Inc. (NASDAQ: EVK) is ranked eighth on our list of 10 best penny stocks popular on Reddit. The company retails clothes and is headquartered in China. In earnings results for the first quarter, posted on May 14, the frim reported a revenue of close to $71 million, up 21% compared to the revenue over the same period last year. The company has a market cap of $33 million. In addition to China, the firm has business interests in Germany, the United Kingdom, Europe, Japan, and the United States.
On August 2, Ever-Glory International Group, Inc. (NASDAQ: EVK) announced that the board of the firm had approved a stock buyback program worth up to $5 million valid till the 31st of December this year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Ever-Glory International Group, Inc. (NASDAQ: EVK) with 98,800 shares worth more than $264,000.
In addition to Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR), Ever-Glory International Group, Inc. (NASDAQ: EVK) is one of the stocks popular on Reddit.
7. Citius Pharmaceuticals, Inc. (NASDAQ: CTXR)
Number of Hedge Fund Holders: 5
Price as of August 3, 2021: $1.89 per share
Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) is a pharmaceutical company headquartered in New Jersey. The firm focuses on developing drugs for critical care. It is ranked seventh on our list of 10 best penny stocks popular on Reddit. The company joined the Russell 2000 Index in late June. Myron Holubiak, the CEO of the company, said at the time that the inclusion was an important milestone for the firm and reflected the work it had been doing in developing first-class treatments for patients around the globe.
In earnings results for the first quarter, posted on May 13, Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) reported earnings per share of -$0.04, beating market predictions by $0.05. The cash and cash equivalents over the period were over $103 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) with 989,096 shares worth more than $1.7 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR) are some of the stocks popular on Reddit, just like Citius Pharmaceuticals, Inc. (NASDAQ: CTXR).
6. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 6
Price as of August 3, 2021: $2.91 per share
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is placed sixth on our list of 10 best penny stocks popular on Reddit. The firm is based in Washington and makes and sells pharmaceutical products. It concentrates on the development of drugs for the treatment of serious infectious diseases. The company has been working on several COVID-19 related drugs and last month obtained regulatory approval from Australian authorities for a study of AT-H201, a therapy for hospitalized COVID-19 patients.
In earnings results for the first quarter, posted on May 14, Atossa Therapeutics, Inc. (NASDAQ: ATOS) reported earnings per share of -$0.04, beating market estimates by $0.01. The cash and cash equivalents over the period were more than $137 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Atossa Therapeutics, Inc. (NASDAQ: ATOS) with 3.3 million shares worth more than $6.9 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), NVIDIA Corporation (NASDAQ: NVDA), and Palantir Technologies Inc. (NYSE: PLTR) are some of the stocks popular on Reddit, alongside Atossa Therapeutics, Inc. (NASDAQ: ATOS).
5. Eton Pharmaceuticals, Inc. (NASDAQ: ETON)
Number of Hedge Fund Holders: 6
Price as of August 3, 2021: $5.74 per share
Eton Pharmaceuticals, Inc. (NASDAQ: ETON) is ranked fifth on our list of 10 best penny stocks popular on Reddit. The firm operates from Illinois and works on the development of drugs for the treatment of rare diseases. On June 15, the company announced that regulatory authorities in the United States had approved Rezipres, an injection marketed by the firm for treatment of clinically important hypotension detected in anesthesia settings. The company has a market cap of over $125 million.
On June 1, investment advisory B Riley maintained a Buy rating on Eton Pharmaceuticals, Inc. (NASDAQ: ETON) stock but lowered the price target to $11 from $13, appreciating a Complete Response Letter related to a new drug that the company had been developing.
At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $31 million in Eton Pharmaceuticals, Inc. (NASDAQ: ETON), up from 5 in the previous quarter worth $33 million.
4. Exela Technologies, Inc. (NASDAQ: XELA)
Number of Hedge Fund Holders: 8
Price as of August 3, 2021: $2.84 per share
Exela Technologies, Inc. (NASDAQ: XELA) is a company that provides transaction processing solutions. It is placed fourth on our list of 10 best penny stocks popular on Reddit. On July 12, the share price of the firm jumped 8% after the company announced that it would be integrating the robotic process automation platform with intelligent document processing in order to expand the range of products it offers in the artificial intelligence category. The firm has a market cap of over $155 million and posted more than $1.2 billion in revenue last year.
On June 2, investment advisory Cantor Fitzgerald initiated coverage of Exela Technologies, Inc. (NASDAQ: XELA) stock with an Overweight rating and a price target of $4, noting that the firm could accelerate revenue growth by 7% beginning 2022.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Armistice Capital is a leading shareholder in Exela Technologies, Inc. (NASDAQ: XELA) with 1.8 million shares worth more than $3.9 million.
3. Exicure, Inc. (NASDAQ: XCUR)
Number of Hedge Fund Holders: 9
Price as of August 3, 2021: $1.81 per share
Exicure, Inc. (NASDAQ: XCUR) is an Illinois-based clinical-stage biotechnology company founded in 2011. It is ranked third on our list of 10 best penny stocks popular on Reddit. On August 2, the share price of the firm jumped 32% after it announced that it had signed an exclusive collaboration agreement with drug giant Ipsen for the research and development of treatments for Huntington’s disease and Angelman syndrome. The firm has a market cap of over $118 million and posted more than $16 million in revenue last year.
On June 11, investment advisory BMO Capital maintained an Outperform rating on Exicure, Inc. (NASDAQ: XCUR) stock with a price target of $6. Gary Nachman, an analyst at the investment firm, issued the ratings update.
At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $19 million in Exicure, Inc. (NASDAQ: XCUR), up from 8 in the preceding quarter worth $18 million.
2. Outlook Therapeutics, Inc. (NASDAQ: OTLK)
Number of Hedge Fund Holders: 11
Price as of August 3, 2021: $2.26 per share
Outlook Therapeutics, Inc. (NASDAQ: OTLK) is placed second on our list of 10 best penny stocks popular on Reddit. The firm is a clinical-stage biopharma firm that concentrates on the development of monoclonal antibodies for various ophthalmic indications. It was founded in 2010 and has a market cap of close to $400 million. The company recently joined the Russell 2000 Index. Lawrence Kenyon, the CEO of the firm, said at the time that the inclusion would help the firm drive market value with increased exposure.
In earnings results for the second fiscal quarter, posted on May 14, Outlook Therapeutics, Inc. (NASDAQ: OTLK) reported earnings per share of -$0.09, just missing estimates by $0.01. The cash and cash equivalents over the period were over $37 million.
At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $5.2 million in Outlook Therapeutics, Inc. (NASDAQ: OTLK), up from 9 the preceding quarter worth $835,000.
1. Infinity Pharmaceuticals, Inc. (NASDAQ: INFI)
Number of Hedge Fund Holders: 15
Price as of August 3, 2021: $2.93 per share
Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) is ranked first on our list of 10 best penny stocks popular on Reddit. The company is developing novel medicines for the treatment of cancer. It is headquartered in Cambridge. On July 28, the share price of the firm jumped by close to 50% after the firm released updated data from two studies of eganelisib, an oral immuno-oncology candidate. After the results were released, investment bank Wells Fargo upgraded the stock to Overweight from Equal Weight and raised the price target to $14 from $4.
On August 2, investment advisory JPMorgan upgraded Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) stock to Overweight from Neutral with a price target of $6, noting that the shares were undervalued given the potential a new cancer drug of the firm, presently under development, offered.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Consonance Capital Management is a leading shareholder in Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) with 6.5 million shares worth more than $21 million.
You can also take a peek at 10 Best Medical Stocks Under $10 and 10 Best One Dollar Stocks to Buy Now.
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Disclosure. None. 10 Best Penny Stocks Popular on Reddit is originally published on Insider Monkey.
