In this article, we discuss 10 penny stocks to buy in April.
The potential for penny stocks can be assessed from big names that once traded under $5 but now are some of the most influential market forces. For example, Apple Inc. (NASDAQ:AAPL) used to trade at almost 80 cents in the early 2000s, but now the company is one of the Big Five American tech firms. Similarly, Monster Beverage Corporation (NASDAQ:MNST) traded at around 6 cents in the early 2000s, but now the company’s market capitalization stands at close to $43 billion. Advanced Micro Devices, Inc. (NASDAQ:AMD) now trades at more than $100, but back in 2015, the shares were trading for under $2.
While big names like Microsoft Corporation (NASDAQ:MSFT), JPMorgan Chase & Co. (NYSE:JPM), and NVIDIA Corporation (NASDAQ:NVDA) remain stock market favorites, in this article, we discuss penny stocks that are making rounds among retail and seasoned investors in April.
Photo by Austin Distel on Unsplash
Our Methodology
After a careful assessment of penny stocks popular among investors in April, we picked companies that are working on ambitious projects that could result in possible growth catalysts in the near future. We ensured that shares of these companies have gained in the last month.
Penny Stocks to Buy in April
10. GBS Inc. (NASDAQ:GBS)
Number of Hedge Fund Holders: N/A
Share Price as of April 6: $1.06
GBS Inc. (NASDAQ:GBS) is a New York-based biosensor diagnostic technology company. Its products use saliva to measure glucose non-invasively, and GBS Inc. (NASDAQ:GBS) is working on developing a COV2 test that can be used as a complement to the (RNA) virus detection test. The stock has climbed over 29% in the last five days as of April 6.
On March 31, GBS Inc. (NASDAQ:GBS) reported that it has received Institutional Review Board’s approval to commence subject enrollment at the Diabetes Research Institute of Sutter Health’s Mills-Peninsula Medical Center in California. The study design is meant to aid the clinical development of GBS Inc. (NASDAQ:GBS)’s Saliva Glucose Biosensor. The study will enroll patients in the second quarter of 2022 and initial data will be sent for publication in the second half of the year. This could act as a significant growth catalyst for the company.
In addition to Microsoft Corporation (NASDAQ:MSFT), JPMorgan Chase & Co. (NYSE:JPM), and NVIDIA Corporation (NASDAQ:NVDA), GBS Inc. (NASDAQ:GBS) is a notable stock to consider in April.
9. Muscle Maker, Inc. (NASDAQ:GRIL)
Number of Hedge Fund Holders: 1
Share Price as of April 6: $0.56
Muscle Maker, Inc. (NASDAQ:GRIL) was incorporated in 2014 and is headquartered in League City, Texas. The company franchises Muscle Maker Grill and Healthy Joe’s restaurants, which serve healthy, ready-to-eat fast-casual food. Over the last month, Muscle Maker, Inc. (NASDAQ:GRIL) stock has gained more than 43.5%.
At the end of December 2021, Muscle Maker, Inc. (NASDAQ:GRIL)’s cash on hand was $15.77 million, and paired with future cash flows the company can fund its growth strategy, capital expenditures, and repayment obligations throughout 2022. The revenue of $10.3 million in 2021 also surpassed the prior-year revenue of $4.5 million.
On March 29, Muscle Maker, Inc. (NASDAQ:GRIL) announced the signing of five new Pokemoto franchise agreements for Rhode Island. Pokemoto, a Hawaiian restaurant chain, is in growth mode and these five new franchise agreements bring the total locations to 37 since opening in November 2021. This will represent a 338% growth rate since Muscle Maker, Inc. (NASDAQ:GRIL)’s acquisition of Pokemoto in May 2021.
Among the hedge funds tracked by Insider Monkey, 1 hedge fund reported owning stakes in Muscle Maker, Inc. (NASDAQ:GRIL) at the end of December 2021, valued at $165,000, compared to 2 funds in the prior quarter, holding stakes in the company worth $69,000.
8. Protalix BioTherapeutics, Inc. (NYSE:PLX)
Number of Hedge Fund Holders: 2
Share Price as of April 6: $1.3886
Protalix BioTherapeutics, Inc. (NYSE:PLX) is a New Jersey-based biopharmaceutical company that specializes in the development and commercialization of therapeutic proteins in the United States, Australia, Canada, Israel, Brazil, Russia, Turkey, and other international markets. Protalix BioTherapeutics, Inc. (NYSE:PLX) shares have gained approximately 32% over the last five days. Priced at $1.38, Protalix BioTherapeutics, Inc. (NYSE:PLX) is a notable penny stock to purchase in April.
Protalix BioTherapeutics, Inc. (NYSE:PLX) soared significantly on April 4 when the company announced the results of its late stage study which showed that PRX–102, an enzyme replacement therapy, was equally effective as Sanofi (NASDAQ:SNY)’s Fabrazyme for the treatment of Fabry disease. The company plans to submit a biologics license application to the FDA for PRX–102 in the second half of 2022. This study was conducted in collaboration with Chiesi Global Rare Diseases, a business unit of Chiesi Farmaceutici. The FDA approval will act as a potential growth catalyst for the company.
According to the fourth quarter database of Insider Monkey, 2 hedge funds were bullish on Protalix BioTherapeutics, Inc. (NYSE:PLX), with combined stakes of $107,000, compared to the same number of funds in the prior quarter, holding stakes in Protalix BioTherapeutics, Inc. (NYSE:PLX) worth $53,000. John Overdeck and David Siegel’s Two Sigma Advisors raised its position in the company by 604% in Q4 2021, holding 99,900 shares valued at $83,000.
7. Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ)
Number of Hedge Fund Holders: 2
Share Price as of April 6: $3.4556
Headquartered in Phoenix, Arizona, Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) is a biotechnology company that uses adult stem cell treatments to work on therapeutic focus areas including immunology, urology, orthopedics, and neurology.
On March 31, Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) announced that it has signed a Master Collaboration Agreement with the University of Miami to fast forward the development of its ImmCelz Supercharged Autologous Immunotherapy Platform. This platform uses adult stem cells derived from suitable donors to lend specific properties to a patient’s immune cells. The ImmCelz platform will be utilized in numerous indications, beginning with strokes. Once the FDA approves clinical trials for strokes, Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) anticipates adding more therapies in the ImmCelz program, including type I diabetes, cardiovascular disease, liver ailments, and kidney disease.
Roth Capital analyst Jonathan Aschoff on February 25 initiated coverage of Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) with a Buy rating and a $10 price target. His rating stems from the U.S. revenue generated from CaverStem, FemCelz, StemSpine, OvaStem, and ImmCelz in their respective initial disease indications. In addition to that, the current valuation does not account for possible commercial upside from other early-stage trials and studies, the analyst told investors.
According to Insider Monkey’s Q4 data, 2 hedge funds were bullish on Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ), holding stakes in the company worth $199,000.
6. Guardforce AI Co., Limited (NASDAQ:GFAI)
Number of Hedge Fund Holders: 2
Share Price as of April 6: $1.1492
Guardforce AI Co., Limited (NASDAQ:GFAI) was incorporated in 2018 and is based in Bangkok, Thailand. The company offers ATM management, cash center operations, cash processing, coin processing, and cheque center services, in addition to other relevant cash handling services in Thailand.
On February 22, EF Hutton analyst Ben Piggott initiated coverage of Guardforce AI Co., Limited (NASDAQ:GFAI) with a Buy rating and a $2 price target. The analyst noted that Guardforce AI Co., Limited (NASDAQ:GFAI)’s “cornerstone asset” is its cash management business in Thailand, and the company is injecting cash flow generated from that division into the cybersecurity and robotics industries, “both of which are logical extensions of the platform”. The company is well-positioned in Thailand and diversification should lead to quicker top-line growth, the analyst contended.
In March 2022, Guardforce AI Co., Limited (NASDAQ:GFAI) announced plans to expand business operations in Dubai and Australia. Similarly, it has launched additional features for its AI powered robots in Macau. This initiative increases the usability and application of Guardforce AI Co., Limited (NASDAQ:GFAI)’s robots while generating new revenue and partnership opportunities.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 2 funds placed long bets on Guardforce AI Co., Limited (NASDAQ:GFAI), with collective stakes amounting to $1.01 million. Hal Mintz’s Sabby Capital owns 125,875 shares of the company, worth $136,000.
Just like Microsoft Corporation (NASDAQ:MSFT), JPMorgan Chase & Co. (NYSE:JPM), and NVIDIA Corporation (NASDAQ:NVDA), Guardforce AI Co., Limited (NASDAQ:GFAI) is a significant stock to look out for.
5. AIkido Pharma Inc. (NASDAQ:AIKI)
Number of Hedge Fund Holders: 3
Share Price as of April 6: $0.4221
AIkido Pharma Inc. (NASDAQ:AIKI) is a New York-based biotechnology company that develops small-molecule anti-cancer therapeutics, focusing mainly on pancreatic cancer, acute myeloid leukemia, and acute lymphoblastic leukemia. The penny stock has gained over 9% in the last month, making it a good candidate to buy in April.
On February 25, AIkido Pharma Inc. (NASDAQ:AIKI) entered into a securities purchase agreement with a few institutional investors. The company raised about $21 million by selling Series O and P preferred stock, which can be converted to common shares at an initial conversion price of $1 per share.
AIkido Pharma Inc. (NASDAQ:AIKI) announced on March 11 a collaboration with Cedars-Sinai Medical Center to co-finance and develop a novel immuno-oncology treatment that promotes the destruction of cancer cells by a patient’s own “killer” T-cells. AIkido Pharma Inc. (NASDAQ:AIKI) will share costs and expenses with Cedars-Sinai and both parties will also share in the proceeds from the commercialization of this treatment.
Among the hedge funds tracked by Insider Monkey, 3 funds were bullish on AIkido Pharma Inc. (NASDAQ:AIKI) at the end of the fourth quarter of 2021, compared to 1 fund in the prior quarter. The total stakes held in Q4 amounted to $329,000.
4. Mullen Automotive, Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 3
Share Price as of April 6: $2.605
Mullen Automotive, Inc. (NASDAQ:MULN) is a California-based electric vehicle company that was founded in 2014. The company also runs CarHub, a digital platform that uses artificial intelligence to make the sale and purchase of cars easier, provides battery technology, and emergency maintenance solutions. In the last month, Mullen Automotive, Inc. (NASDAQ:MULN) shares have surged more than 144%.
On March 28, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it expects to have over $65 million in cash and cash equivalents at the end of the March 2022 quarter. According to the company’s CEO, Mullen Automotive, Inc. (NASDAQ:MULN) has made notable progress in the first quarter of 2022, and the company has enough financing to execute on its product commitments for 2022. Its balance sheet is the strongest it has ever been, according to the management.
According to Insider Monkey’s Q4 data, 3 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN), with combined stakes valued at $512,000, compared to 2 funds in the previous quarter, holding stakes in the company worth $318,000.
3. Assertio Holdings, Inc. (NASDAQ:ASRT)
Number of Hedge Fund Holders: 6
Share Price as of April 6: $3.16
Assertio Holdings, Inc. (NASDAQ:ASRT) is an Illinois-based specialty pharmaceutical company that develops medication for neurology, pain management, and inflammation. The stock has climbed nearly 40% in the last month.
The company announced on March 9 a Q4 revenue of $33.33 million, up 10.5% year-over-year, exceeding market consensus by $2.56 million. Non-GAAP adjusted EBITDA for the fourth quarter came in at $17.8 million, representing a 13% growth as compared to the third quarter and 118% versus the earlier year.
On March 31, Assertio Holdings, Inc. (NASDAQ:ASRT) announced a partnership with BlinkRx to support healthcare professionals and their patients undergoing treatment with Otrexup, a prescription drug device. Patients benefit from transparent low prices, free home delivery, and professional medical support.
According to the fourth quarter database of Insider Monkey, 6 hedge funds were bullish on Assertio Holdings, Inc. (NASDAQ:ASRT), up from 4 funds in the prior quarter. The total stakes owned in Q4 amounted to $984,000.
2. Aterian, Inc. (NASDAQ:ATER)
Number of Hedge Fund Holders: 9
Share Price as of April 6: $3.179
Aterian, Inc. (NASDAQ:ATER) is a New York-based consumer products company using artificial intelligence to power an e-commerce marketplace. The company offers health and beauty products, electronic appliances, and essential oils on its platform. The shares have surged almost 31% over the last month.
Alliance Global Partners analyst Brian Kinstlinger on March 11 maintained a Buy recommendation on Aterian, Inc. (NASDAQ:ATER) but lowered the price target on the shares to $4.50 from $9 after the Q4 results. The analyst cited dilution from the latest equity offering for the price target drop.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 9 funds held long positions in Aterian, Inc. (NASDAQ:ATER), compared to 6 funds in the preceding quarter. The Q4 stakes amounted to more than $3 million.
1. Xos, Inc. (NASDAQ:XOS)
Number of Hedge Fund Holders: 16
Share Price as of April 6: $2.8503
Xos, Inc. (NASDAQ:XOS) was founded in 2020 and is headquartered in Los Angeles, California. It operates as a mobility solutions company, manufacturing and marketing battery EVs and charging infrastructure. Xos, Inc. (NASDAQ:XOS) also offers maintenance and vehicle financing services. The stock has surged over 32% in the last month.
On April 5, Xos, Inc. (NASDAQ:XOS) announced that it had delivered 15 of its battery-electric vans to five different FedEx Corporation (NYSE:FDX) Ground Operators in Southern California during March. Xos, Inc. (NASDAQ:XOS) will dispatch more vehicles to the company in 2022.
Xos, Inc. (NASDAQ:XOS) reported on March 29 its fourth quarter earnings. The revenue of $3.3 million was up 266.7% from the prior-year quarter, exceeding market consensus by $0.44 million. The Q4 EPS of $0.07 also beat estimates by $0.19. The company announced delivering 32 units to customers in Q4 2021, and 44 units in the entire year.
According to Insider Monkey’s Q4 data, 16 hedge funds were bullish on Xos, Inc. (NASDAQ:XOS), with stakes valued at $5.5 million. Himanshu Gulati’s Antara Capital held a prominent position in the company, with 500,000 shares worth $1.5 million.
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Disclosure: None. 10 Penny Stocks to Buy in April is originally published on Insider Monkey.
