In this article, we will be taking a look at the 12 Penny Stocks with Insider Buying in 2026.
The CEO of Wealth Consulting Group, Jimmy Lee, told BNN Bloomberg on March 25 that as conditions calm, the ongoing geopolitical crises in the Middle East may eventually present investors with selective chances. He pointed out that the current market collapse, which was caused by geopolitical concerns and made worse by the AI-related sell-off, has produced appealing entry points in the technology sector, especially in small-cap companies, which he thinks are still cheap. If interest rates drop, Lee continued, tiny caps may experience additional gains.
Lee stressed that after the disputes subside, a wider market recovery might ensue, especially if the Strait of Hormuz completely reopens and maritime flows resume as usual. He claimed that in that case, oil prices may drastically drop, allaying worries about continuously rising energy prices and increasing investor confidence. With leadership expanding beyond large-cap tech into more value-oriented and cyclical sectors, particularly small caps, he anticipates that this might aid in an equity recovery.
Despite their allure, penny stocks continue to be a high-risk market. The iShares Micro-Cap ETF returned 22.8% in 2025 using BlackRock ETF proxies, which was greater than the iShares Core S&P 500 ETF’s 17.9%. However, over ten years, the micro-cap fund annualized 9.4% compared to the S&P 500’s 14.8%, and its three-year volatility was significantly higher at 22.5% versus 12.0%. Additionally, the SEC cautions that penny stocks are easier to manipulate, less liquid, and more volatile.
Since February 28, 2026, the situation with Iran has increased in instability. On March 15, 2026, Forbes reported that the S&P 500 plummeted 3.5%, foreign stocks sank 8.3%, WTI crude increased from $67 to almost $100 per barrel by March 13, 2026, gasoline increased from $2.98 to $3.68 per gallon, and prediction markets increased the likelihood of a recession in 2026 from 22% to 34%.
With that being said, let’s look at the penny stocks with Insider buying.
Our Methodology
For our methodology, we screened for stocks trading below $5 with at least 20% insider ownership. From this list, we favored stocks with recent news and developments and ranked them in ascending order based on insider ownership.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Here is our list of the 12 penny stocks with Insider buying in 2026.
12. CVD Equipment Corporation (NASDAQ:CVV)
Insider Ownership: 23.53%
Share Price as of Last Close of March 27: $4.98
CVD Equipment Corporation (NASDAQ:CVV) is one of the stocks with Insider buying on our list.
TheFly reported on March 30 that CVV reported fourth-quarter 2025 results showing revenue of $4.95 million, down from $7.41 million in the prior-year period. Management said bookings remained under pressure due to weaker demand in its CVD Equipment segment, uncertainty tied to tariffs, lower U.S. government funding for universities, and slower adoption of its products in certain markets. The company added that it is closely tracking customer demand, geopolitical risks, and potential tariff effects as it adjusts its planning.
Separately, on March 24, CVD Equipment Corporation (NASDAQ:CVV) said it signed a definitive deal to transfer its Stainless Design Concepts (SDC) division to Atlas Copco Group for about $16.9 million in cash, subject to customary purchase price adjustments. The company expects the transaction to close in the second quarter of 2026, pending standard closing requirements.
Management said the sale supports its previously disclosed review of strategic alternatives and will sharpen its focus on the core CVV business. The divestiture is also expected to improve the balance sheet and increase financial flexibility as the company continues assessing opportunities across its operations, product portfolio, and facilities with the aim of enhancing shareholder value.
CVD Equipment Corporation (NASDAQ:CVV) is a U.S.-based industrial equipment company that designs and manufactures chemical vapor deposition, thermal processing, and gas delivery systems for semiconductor, aerospace, energy, and advanced materials applications.
11. Tilly’s, Inc. (NYSE:TLYS)
Insider Ownership:26.52%
Share Price as of Last Close of March 27: $4.09
Tilly’s, Inc. (NYSE:TLYS) is one of the stocks with Insider buying.
TheFly reported earlier on March 12 that Roth Capital increased its price target on TLYS to $3 from $2.25 while maintaining a Neutral rating. The firm pointed to the company’s fourth quarter results, which showed improving comparable sales, stronger operating leverage, progress in profitability, and positive free cash flow. However, Roth remains cautious and said it would like to see clearer evidence of sustained positive comps and consistent profitability before taking a more constructive stance on the shares.
Additionally, on March 11, Tilly’s, Inc. (NYSE:TLYS) provided its outlook for the first quarter of fiscal 2026, projecting net sales between $119 million and $125 million, representing a comparable sales increase of roughly 16% to 22% versus the prior year.
The company anticipates product margins to improve by 310 to 330 basis points and SG&A expenses near $44 million to $45 million, excluding any potential non-cash impairments. TLYS expects a net loss in the range of $10.1 million to $8.0 million, or $0.34 to $0.27 per share, reflecting continued deferred tax asset allowances. The firm plans to operate approximately 220 stores by the quarter’s end, down from 238 last year, while maintaining strong comparable sales momentum.
Tilly’s, Inc. (NYSE:TLYS) is a U.S. retail company specializing in casual apparel, footwear, and accessories, targeting youth and young adult consumers through stores and e-commerce platforms.
