In this article, we discuss 10 best penny stocks to buy in September.
As the stock market runs red, investors are wary about spending copious amounts of money and making huge investments amid such macro uncertainty. On the other hand, investors with limited money but high appetite for risk also look for stocks with growth potential. This is where the demand for penny stocks skyrockets. Penny stocks, with proper growth catalysts and funding, have the potential for exponential growth. These stocks can trade higher over time, realizing significant gains for stakeholders.
The S&P 500, Nasdaq, and Dow have all plunged from their highs, effectively concluding a multi-week rally. The stagnant market sentiment has led many investors to seek alpha elsewhere. This is why higher volatility investments like penny stocks are the go-to trades for many right now. Investors who can’t afford the likes of Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) gravitate towards penny stocks, in the hopes of significant gains.
Retail investors have a huge influence on the stock market. They usually buy up penny stocks in droves, hoping for the companies with growth catalysts to flourish over the years. In this article, we discuss 10 best penny stocks to buy in September.
Our Methodology
We picked some of the best stocks priced under $5 as of September 7 for this analysis. These stocks have received positive analyst coverage recently and display growth fundamentals. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.
Now, let’s start our list of 10 best penny stocks to buy in September.
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Best Penny Stocks to Buy in September
10. Dynatronics Corporation (NASDAQ:DYNT)
Number of Hedge Fund Holders: 2
Share Price as of September 7: $0.57
Dynatronics Corporation (NASDAQ:DYNT) is a Minnesota-based medical device company that designs and sells physical therapy, rehabilitation, orthopedics, pain management, and athletic training products in the United States. Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies and Israel Englander’s Millennium Management held stakes worth $562,000 and $7,000 in Dynatronics Corporation (NASDAQ:DYNT) at the end of Q2 2022, respectively.
Lake Street analyst Brooks O’Neil on July 27 initiated coverage of Dynatronics Corporation (NASDAQ:DYNT) with a Buy rating and a $4 price target, categorizing it as “a solid, but unspectacular company”. However, after over 40 years in the industry, the analyst sees Dynatronics Corporation (NASDAQ:DYNT) as “a platform opportunity in the large, growing but highly fragmented rehabilitation and bracing markets”. The organic growth at Dynatronics Corporation (NASDAQ:DYNT) has exceeded market growth and internal goals for four quarters consecutively, as per the analyst. He believes the company is on a clear path to profitable growth, and encouraged investors to “brace up and buy this stock now”.
In addition to Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Dynatronics Corporation (NASDAQ:DYNT) is one of the notable stocks to buy in order to diversify a portfolio.
9. Clene Inc. (NASDAQ:CLNN)
Number of Hedge Fund Holders: 5
Share Price as of September 7: $2.92
Clene Inc. (NASDAQ:CLNN) is headquartered in Salt Lake City, Utah, operating as a clinical-stage pharmaceutical company, specializing in the discovery and commercialization of clean-surfaced nanotechnology therapeutics. On July 19, a panel of the European Medicines Agency (EMA) recommended authorizing orphan drug designation to Clene Inc. (NASDAQ:CLNN)’s CNM-Au8 to treat amyotrophic lateral sclerosis (ALS). If the recommendation is approved, the orphan drug status has benefits, including 10 years of market exclusivity.
On July 18, H.C. Wainwright analyst Joseph Pantginis initiated coverage of Clene Inc. (NASDAQ:CLNN) with a Buy rating and a $16 price target. The analyst believes that Clene Inc. (NASDAQ:CLNN)’s approach presents core advantages and unique elements when compared to other therapies in the neuro space. Clene Inc. (NASDAQ:CLNN) features on our list of the best penny stocks to buy in September on the back of optimistic analyst coverage and potential growth catalysts.
According to the second quarter database of Insider Monkey, 5 hedge funds were bullish on Clene Inc. (NASDAQ:CLNN), with collective stakes worth $1.03 million, compared to 3 funds in the earlier quarter holding stakes worth $2.11 million. Ken Griffin’s Citadel Investment Group is a notable position holder in the company, with 65,252 shares valued at $164,000.
8. Abeona Therapeutics Inc. (NASDAQ:ABEO)
Number of Hedge Fund Holders: 8
Share Price as of September 7: $3.68
Abeona Therapeutics Inc. (NASDAQ:ABEO) is a New York-based clinical-stage biopharmaceutical company that develops gene and cell therapies for serious rare genetic diseases. On August 11, the company posted a Q2 revenue of $1 million and announced cash and cash equivalents of $26 million as of June 30, 2022. It is one of the best penny stocks to buy in September.
Cantor Fitzgerald analyst Kristen Kluska on August 11 raised the price target on Abeona Therapeutics Inc. (NASDAQ:ABEO) to $22 from $15 as the company reduced short-term expenses, and kept an Overweight rating on the shares after Q2 earnings. The analyst observed that Abeona Therapeutics Inc. (NASDAQ:ABEO) is close to posting the topline Phase 3 data from gene-corrected cell therapy, EB-101, in recessive dystrophic epidermolysis bullosa. While this is the primary focus on the stock, in the short-term, the analyst is also anticipating more preclinical data from the ophthalmology portfolio, which could support IND meetings in the second half of 2022 and early 2023.
According to Insider Monkey’s data, Abeona Therapeutics Inc. (NASDAQ:ABEO) was part of 8 hedge fund portfolios at the end of June 2022, compared to 11 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest position holder in the company, with 8 million shares worth $1.66 million.
7. 9 Meters Biopharma, Inc. (NASDAQ:NMTR)
Number of Hedge Fund Holders: 8
Share Price as of September 7: $0.2599
9 Meters Biopharma, Inc. (NASDAQ:NMTR) is a North Carolina-based clinical-stage biopharmaceutical company, focused on treatments for rare digestive diseases, gastrointestinal conditions, and severe disorders. As of June 30, 2022, the company’s cash and cash equivalents totaled approximately $29.5 million, compared to roughly $37.2 million as of March 31, 2022. 9 Meters Biopharma, Inc. (NASDAQ:NMTR) is one of the best penny stocks to buy in September.
On July 18, Oppenheimer analyst Francois Brisebois assumed coverage of 9 Meters Biopharma, Inc. (NASDAQ:NMTR) with an Outperform rating and a $4 price target due to a reallocation of the firm’s analyst resources.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on 9 Meters Biopharma, Inc. (NASDAQ:NMTR) at the end of the second quarter of 2022, with collective stakes worth $8.26 million, compared to the same number of funds in the prior quarter with stakes worth about $19 million. Samuel Isaly’s OrbiMed Advisors is a prominent stakeholder of the company, with 8.50 million shares worth $2.2 million.
6. Gold Resource Corporation (NYSE:GORO)
Number of Hedge Fund Holders: 10
Share Price as of September 7: $1.745
Gold Resource Corporation (NYSE:GORO) is a Colorado-based company that engages in the exploration and production of gold and silver projects in Mexico and the United States. The company also explores and develops copper, lead, and zinc deposits. On July 28, Gold Resource Corporation (NYSE:GORO) declared a $0.01 per share quarterly dividend, in line with previous. The dividend is payable on September 30, to shareholders of record as of September 15. The company delivered a dividend yield of 2.30% on September 7.
Alliance Global Partners analyst Jake Sekelsky on July 21 initiated coverage of Gold Resource Corporation (NYSE:GORO) with a Buy rating and a $4.25 price target. The company is an undervalued low-cost precious metals producer on its way to internal production growth, the analyst told investors. The analyst observed that Gold Resource Corporation (NYSE:GORO) has consecutively paid dividends over the last ten years, something he anticipates to continue in the future.
According to Insider Monkey’s Q2 data, 10 hedge funds were bullish on Gold Resource Corporation (NYSE:GORO), compared to 11 funds in the last quarter. Frederick Disanto’s Ancora Advisors is a prominent position holder in the company, with 695,380 shares worth $1.13 million.
If investors cannot afford the likes of Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), they can consider buying Gold Resource Corporation (NYSE:GORO), one of the best penny stocks, in September.
5. Fortress Biotech, Inc. (NASDAQ:FBIO)
Number of Hedge Fund Holders: 11
Share Price as of September 7: $1.10
Fortress Biotech, Inc. (NASDAQ:FBIO) is a New York-based company that develops and commercializes pharmaceutical and biotechnology products. On August 11, Fortress Biotech, Inc. (NASDAQ:FBIO) announced that its cytomegalovirus (CMV) vaccine Triplex received a $20 million grant from the National Institute of Allergy and Infectious Diseases for control of CMV in patients facing liver transplantation.
On August 4, Ladenburg analyst Jeffrey Cohen assumed coverage of Fortress Biotech, Inc. (NASDAQ:FBIO) with a Buy rating and a $6 price target, categorizing the company as an “innovative biotechnology development engine” that delivers cutting-edge assets. There are presently 12 entities building a pipeline of assets, 4 of which are publicly traded, and the analyst believes Fortress Biotech, Inc. (NASDAQ:FBIO)’s business model provides higher diversification and lower risk when compared to alternative biotechnology candidates.
Among the hedge funds tracked by Insider Monkey, 11 funds reported owning stakes in Fortress Biotech, Inc. (NASDAQ:FBIO) at the end of June 2022, compared to 10 funds in the prior quarter. Nantahala Capital Management is the biggest stakeholder of the company, with 8.75 million shares worth $7.35 million.
4. Compass, Inc. (NYSE:COMP)
Number of Hedge Fund Holders: 13
Share Price as of September 7: $2.895
Compass, Inc. (NYSE:COMP) is a New York-based real estate brokerage firm that uses a cloud-based platform for seamless customer relationship management, marketing, client service, and other functionalities in the real estate industry. The company reported a Q2 revenue of $2.02 billion, climbing 3.6% year over year. It is one of the best penny stocks to consider for a diversified portfolio.
Needham transferred its coverage of Compass, Inc. (NYSE:COMP) to analyst Bernie McTernan on September 1, who assigned a Buy rating to the stock with a price target of $5. Compass, Inc. (NYSE:COMP) represents the preferred way to play the difficult US real estate market, with room for cost control that will pave a path to profitability even if the macro environment remains difficult, the analyst told investors. Compass, Inc. (NYSE:COMP)’s performance over the last quarter and updated guidance represents a clearing event to take expectations lower, and he sees a large but favorable risk/reward from here, the analyst added.
According to Insider Monkey’s data, 13 hedge funds were long Compass, Inc. (NYSE:COMP) at the end of June 2022, with collective stakes worth $128 million. Jacob Mitchell’s Antipodes Partners is the leading position holder in the company, with 12.7 million shares worth over $46 million.
Here is what Artisan Small Cap Fund has to say about Compass, Inc. (NYSE:COMP) in its Q3 2021 investor letter:
“We added several new GardenSM positions in Q3 including Compass. Compass is a real estate brokerage firm which provides its agents with a proprietary, end-to-end cloud-based platform. The company helps address the needs of buying and selling homes from client prospecting to closing, which includes customer relationship management, AI-driven prospecting, marketing (digital, social, email, video, print, signage, lead generation), market analysis and collaboration tools. The platform also uses machine learning, artificial intelligence and other advanced data analytics strategies to draw insights across the platform, allowing agents to be more efficient and informed in their selling efforts. We believe this technology advantage is key to the company continuing to disrupt and capture real estate commission market share. We have been impressed with the company’s ability to capture 4% market share since it was founded in 2012 (vs. Redfin, founded in 2002, holding a 1% market share). The company’s profit cycle can also be boosted by adding on additional services such as title insurance referral and escrow services, real estate marketing, home renovation referrals, home insurance and home warranty referrals—all of which we believe have a significantly larger addressable market than commissions (~7X).”
3. Adverum Biotechnologies, Inc. (NASDAQ:ADVM)
Number of Hedge Fund Holders: 14
Share Price as of September 7: $1.095
Adverum Biotechnologies, Inc. (NASDAQ:ADVM) is a California-based clinical-stage gene therapy company that focuses on ocular and rare diseases. Adverum Biotechnologies, Inc. (NASDAQ:ADVM) expects its cash position of $235.8 million as of June 30, 2022 to fund operations into 2025. It is one of the best penny stocks to buy in September.
Truist analyst Joon Lee on July 7 upgraded Adverum Biotechnologies, Inc. (NASDAQ:ADVM) to Buy from Hold with a price target of $4, up from $3. The analyst now sees a “clearer development path” for ixoberogene soroparvovec in wet age-related macular degeneration. In addition to that, Adverum Biotechnologies, Inc. (NASDAQ:ADVM)’s cash runway has been extended by 1 year into 2025 after its restructuring. The analyst is “relieved” to see Adverum Biotechnologies, Inc. (NASDAQ:ADVM)’s deal with the FDA and the European Medicines Agency on the Phase 2 trial design.
According to Insider Monkey’s data, 14 hedge funds were bullish on Adverum Biotechnologies, Inc. (NASDAQ:ADVM) at the end of the second quarter of 2022, compared to 11 funds in the last quarter. Lawrence Kam’s Sonic Capital is the leading position holder in the company, with 6.5 million shares worth about $8 million.
2. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 22
Share Price as of September 7: $3.465
Archer Aviation Inc. (NYSE:ACHR) was incorporated in 2018 and is headquartered in Palo Alto, California. It operates as an urban air mobility company, manufacturing and operating electric vertical takeoff and landing aircrafts to carry passengers. On August 10, Archer Aviation Inc. (NYSE:ACHR) announced a $10 million pre-delivery payment from United Airlines Holdings, Inc. (NASDAQ:UAL) for 100 electric vertical take-off and landing aircrafts.
On August 16, Deutsche Bank analyst Edison Yu raised the price target on Archer Aviation Inc. (NYSE:ACHR) to $12 from $10 and reiterated a Buy rating on the shares. After Q2 earnings from the eVTOL group, the analyst has more confidence that Archer Aviation Inc. (NYSE:ACHR) is “making fast and underappreciated progress” towards bringing an eVTOL to market.
According to Insider Monkey’s database, Archer Aviation Inc. (NYSE:ACHR) was part of 22 hedge fund portfolios at the end of Q2 2022, compared to 28 funds in the last quarter. Sculptor Capital held the leading stake in the company, comprising 2.90 million shares worth $28.5 million.
1. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 29
Share Price as of September 7: $2.555
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company that develops a platform for cell programming. The company serves multiple end markets, such as specialty chemicals, agriculture, food, consumer products, and pharmaceuticals. The company’s Q2 2022 financials included a top-line beat and a guidance raise. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) also raised its 2022 revenue outlook to $425 million-$440 million from the earlier forecast of $375 million-$390 million, as well as exceeding the Street estimates.
On August 16, Raymond James analyst Rahul Sarugaser raised the price target on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to $14.50 from $11.50 and maintained an Outperform rating on the shares. The analyst sees great significance in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) adding 13 sector-diversified new programs in the June quarter, boosting his confidence that it should meet its target of 60 new programs this year.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were long Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of Q2 2022, compared to 30 funds in the prior quarter.
You can also take a look at 10 Best Media Stocks To Buy and Best Cheap Tech Stocks.
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Disclosure: None. 10 Best Penny Stocks to Buy in September is originally published on Insider Monkey.
