In this article, we discuss the 10 Reddit’s WallStreetBets stocks under $5.
Reddit forum WallStreetBets, with a user base of close to 11 million, is one of the hottest places in the finance world, with everyone from retail investors to multi-billion dollar hedge funds keeping track of stock mentions on the forum to keep abreast of the latest market trends. The forum was founded in 2012 by Jaime Rogozinski and had only around 1.6 million members in late 2020 before the short squeeze saga involving GameStop and AMC Entertainment in early 2021 propelled the group into the mainstream.
The importance of the group as a retail investor hub can be gauged from an investor note penned by Nikolaos Panigirtzoglou, a financial analyst at investment bank JPMorgan, in June this year in which he claimed that retail investors had already poured close to $500 billion into equities this year and were on track to invest more than $1 trillion into the stock market by the end of December 2021. Ben Onatibia, a strategist at Vanda Research, believes that the investing habits of retail investors are changing, with short squeezes going “out of fashion”.
With the increased interest around cryptocurrency and related stocks at the forum in the past few weeks, the moderators of the WallStreetBets forum recently decided to create a spinoff of the group named WallStreetBetsCrypto that is dedicated to the discussions of crypto offerings. In an interview with news platform Kitco News, Rogozinski has also recently floated the idea of a new “meme stock”, a term he used to refer to a new type of exchange-traded product that would let investors with a stake have a say in the asset selection process.
Investors interested in these trends should monitor the stocks presently popular on WallStreetbets like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. In addition to these more expensive options, there are several stocks under $5 that are also being discussed on the forum. Some of these are discussed in detail below. There is little doubt that retail investors have fundamentally altered market dynamics in the past few months.
Hedge funds have suffered losses of billions of dollars in a battle for market supremacy with retail investors this year. This is partly why retail investors have come to command great attention in the finance world, especially in the context of the WallStreetBets forum. 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 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 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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Our Methodology
With this context in mind, here is our list of the 10 Reddit’s WallStreetBets stocks under $5. The stocks were selected based on the hype around them on Reddit forum WallStreetBets. All the stocks mentioned below have a share price below $5.
The stocks are ranked according to the number of hedge funds having stakes in each stock. Data of 873 hedge funds tracked by Insider Monkey was used to gauge hedge fund sentiment around each company.
In addition, special importance was assigned to the analyst ratings and business fundamentals for each stock to provide readers with some more context for their investment decisions.
Reddit’s WallStreetBets Stocks Under $5
10. Enzolytics Inc. (OTC:ENZC)
Number of Hedge Fund Holders: N/A
Share Price as of September 30: $0.17
Enzolytics Inc. (OTC:ENZC) is placed tenth on our list of 10 Reddit’s WallStreetBets stocks under $5. The firm operates as a biotech firm focusing on the development of drugs for the treatment of infectious diseases. It is headquartered in Texas.
On July 21, Enzolytics Inc. announced that it had agreed to a deal with multinational Lonza Bioscience to accelerate the development of new anti-HIV and anti-COVID-19 monoclonal antibodies.
Enzolytics Inc. has a market cap of over $550 million and was founded in 2004. Some of the drugs it is working on presently include treatments for HIV, Hepatitis, rabies, influenza, tetanus, and diphtheria, among others.
Just like Tesla, Inc., Apple Inc., NIO Inc., Amazon.com, Inc., and Alphabet Inc., Enzolytics Inc. is one of the stocks attracting the attention of retail investors on Reddit.
9. Fernhill Corporation (OTC:FERN)
Number of Hedge Fund Holders: N/A
Share Price as of September 30: $0.05
Fernhill Corporation (OTC:FERN) is ranked ninth on our list of 10 Reddit’s WallStreetBets stocks under $5. The firm operates as a media, technology, and entertainment company. It is headquartered in Nevada.
On July 27, Fernhill Corporation, through subsidiary Crypto Mining, announced that it reached an agreement for the purchase of PerfectMine. The purchase will enhance monitoring and optimization of crypto mining rigs for the company and improve efficiency.
Fernhill Corporation has a market cap of $84 million. In the tech arena, the firm develops and markets proprietary software solutions that focus on crypto currency mining, digital asset trading and infrastructure applications.
8. Cyren Ltd. (NASDAQ:CYRN)
Number of Hedge Fund Holders: 3
Share Price as of September 30: $0.55
Cyren Ltd. (NASDAQ:CYRN) is placed eighth on our list of 10 Reddit’s WallStreetBets stocks under $5. It operates as a software company that provides cybersecurity solutions. It is headquartered in Israel.
In earnings results for the second quarter, posted on August 16, Cyren Ltd. reported earnings per share of -$0.06, in line with estimates. The revenue over the period was $7.6 million, down 17% year-on-year.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.7 million in Cyren Ltd., the same as in the previous quarter worth $1.8 million.
7. Farmmi, Inc. (NASDAQ:FAMI)
Number of Hedge Fund Holders: 2
Share Price as of September 30: $0.34
Farmmi, Inc. (NASDAQ:FAMI) is a China-based company that processes and sells agricultural products like Mu Er mushrooms. It is ranked seventh on our list of 10 Reddit’s WallStreetBets stocks under $5.
On September 29, Farmmi, Inc. announced that it had finalized a deal to purchase Jiangxi Xiangbo Agriculture and Forestry Development for RMB 70 million. Yefang Zhang, the CEO of the firm, said the move would expand the forest-related business.
At the end of the second quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $888,000 in Farmmi, Inc., the same as in the previous quarter worth $507,000.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Farmmi, Inc. with 1.5 million shares worth more than $707,000.
Tesla, Inc., Apple Inc., NIO Inc., Amazon.com, Inc., and Alphabet Inc. are some of the stocks commanding the attention of Redditors, just like Farmmi, Inc..
6. Citius Pharmaceuticals, Inc. (NASDAQ:CTXR)
Number of Hedge Fund Holders: 3
Share Price as of September 30: $2.00
Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) is placed sixth on our list of 10 Reddit’s WallStreetBets stocks under $5. The firm makes and sells drugs for critical care patients and is headquartered in New Jersey.
On September 7, Citius Pharmaceuticals, Inc. announced that it had entered into a deal with Dr. Reddy’s Laboratories to purchase an exclusive license of E7777, an oncology immunotherapy for the treatment of non-Hodgkin lymphoma.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $7.5 million in Citius Pharmaceuticals, Inc., down from 5 in the preceding quarter worth $2.7 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. with 1.8 million shares worth more than $6.6 million.
Tesla, Inc., Apple Inc., NIO Inc., Amazon.com, Inc., and Alphabet Inc. are some of the stocks popular on Reddit, along with Citius Pharmaceuticals, Inc..
5. Naked Brand Group Limited (NASDAQ:NAKD)
Number of Hedge Fund Holders: 4
Share Price as of September 30: $0.71
Naked Brand Group Limited (NASDAQ:NAKD) is ranked fifth on our list of 10 Reddit’s WallStreetBets stocks under $5. The company makes and sells intimate apparel and swimwear products. It is headquartered in Australia.
Naked Brand Group Limited has a market cap of $725 million and posted more than $57 million in revenue in the last fiscal year. The short interest on the stock is 4.69% and the 52-week price range lies between $0.07 and $3.40.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $618,000 in Naked Brand Group Limited, the same as in the previous quarter worth $206,000.
4. CorMedix Inc. (NASDAQ:CRMD)
Number of Hedge Fund Holders: 5
Share Price as of September 30: $4.66
CorMedix Inc. (NASDAQ:CRMD) is placed fourth on our list of 10 Reddit’s WallStreetBets stocks under $5. The company is headquartered in New Jersey and focuses on the development of drugs for the treatment of infectious diseases.
CorMedix Inc. has a market cap of $179 million and posted nearly $240,000 in revenue last year. The short interest on the stock is 5.41% and the 52-week price range lies between $4.36 and $18.60.
At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $12.4 million in CorMedix Inc., up from 3 in the previous quarter worth $17.5 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Elliott Management is a leading shareholder in CorMedix Inc. with 1.5 million shares worth more than $10.6 million.
3. Progenity, Inc. (NASDAQ:PROG)
Number of Hedge Fund Holders: 6
Share Price as of September 30: $1.08
Progenity, Inc. (NASDAQ:PROG) is a California-based biotechnology company that makes and sells molecular testing products. It is ranked third on our list of 10 Reddit’s WallStreetBets stocks under $5.
On July 29, investment advisory Piper Sandler maintained an Overweight rating on Progenity, Inc. stock and raised the price target to $5 from $3. Steven Mah, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $34 million in Progenity, Inc., down from 9 in the previous quarter worth $17 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Armistice Capital is a leading shareholder in Progenity, Inc. with 7.5 million shares worth more than $27 million.
2. Outlook Therapeutics, Inc. (NASDAQ:OTLK)
Number of Hedge Fund Holders: 7
Share Price as of September 30: $2.13
Outlook Therapeutics, Inc. (NASDAQ:OTLK) is placed second on our list of 10 Reddit’s WallStreetBets stocks under $5. The company focuses on the development of monoclonal antibodies for various ophthalmic indications. It operates from New Jersey.
On August 3, investment advisory HC Wainwright maintained a Buy rating on Outlook Therapeutics, Inc. stock and raised the price target to $6 from $5. Douglas Tsao, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $2.3 million in Outlook Therapeutics, Inc., down from 11 the preceding quarter worth $5.2 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Outlook Therapeutics, Inc. with 695,800 shares worth more than $1.7 million.
1. Tellurian Inc. (NASDAQ:TELL)
Number of Hedge Fund Holders: 17
Share Price as of September 30: $3.75
Tellurian Inc. (NASDAQ:TELL) is ranked first on our list of 10 Reddit’s WallStreetBets stocks under $5. The firm operates in the energy industry and is headquartered in Texas.
On July 8, investment advisory B Riley initiated coverage of Tellurian Inc. stock with a Buy rating and a price target of $8, noting the firm was poised to benefit from the expected growth and evolution of the global natural gas market.
At the end of the second quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $103 million in Tellurian Inc., up from 12 in the previous quarter worth $28 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Tellurian Inc. with 7.2 million shares worth more than $33 million.
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This article is originally published at Insider Monkey.
