These 10 Penny Stocks are Trending on Reddit

In this article, we take a look at the 10 penny stocks that are trending on Reddit. If you want to skip reading about how penny stocks have exploded in the past, you can go directly to These 5 Penny Stocks are Trending on Reddit.

Buy Low, Sell High

A penny stock, also known as a microcap stock, refers to a stock that trades under $5 a share, and the company’s market capitalization is valued at less than $300 million. Penny stocks can be high-risk investments but, at the same time, can be high-reward as well.

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

The above is one of the most notable quotes from legendary value investor Warren Buffett. This translates to a famous principle in investing: buy low and sell high.

Analyze Before You Invest

Penny stocks can be rewarding if the company is on an upwards trajectory. Understanding a company’s business model, mission statement, and company fundamentals serve as the key to identifying if the company has growth potential. What makes this company different than all its rivals in the market? This and a lot of other questions like this should be pondered upon before taking a leap of faith and initiating positions. With proper analyses of companies, investors can mitigate risk and reap profits off of cheap stocks that exhibit growth potential.

Penny Stocks That Exploded

There was a time when Amazon.com, Inc. (NASDAQ:AMZN) was trading under $2 back in 1997. Today the company has a market cap of $1.67 trillion, and trades above $3,200 per share. Another notable example would be Advanced Micro Devices, Inc. (NASDAQ:AMD), which was trading a little shy of $4 during the second quarter of 2016. As of March 23, 2022, the company is worth an astounding $196.15 billion and is trading at above $100 per share. One of the most controversial penny stocks of all time would have to be GameStop Corp. (NYSE:GME). The stock was trading in the $5 range during the third quarter of 2020. It was in January of 2021, when the company was trading under $20, that a group of retail Reddit investors initiated a short-squeeze, which made GameStop Corp. (NYSE:GME) hit a record high of $483 per share on January 28, 2021. As of March 23, 2022, GameStop Corp. (NYSE:GME) is worth $10.87 billion and is being traded at roughly $141 per share.

Our Methodology

To determine the 10 penny stocks that are trending on Reddit, we did a careful assessment of threads and discussions related to penny stocks posted on the app in the past week, including the past 24 hours. We then did extensive research about the highlighted companies to understand their mission statements and business models.

We narrowed down our list of the 10 penny stocks that are trending on Reddit to companies that had strong business fundamentals and were working in industries that have growth potential.

These 10 Penny Stocks are Trending on Reddit

10. Citius Pharmaceuticals, Inc. (NASDAQ:CTXR)

Number of Hedge Fund Holders: 3

Closing Price on March 23: $1.75

Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) operates as a specialty pharmaceutical company that engages in the development and commercialization of critical care products in adjunct cancer care, prescription products, and mesenchymal stem cell therapy. Last November, Maxim analyst Michael Okunewitch initiated coverage of Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) with a Buy rating and $4 price target. The analyst noted that with about $70 million in cash, the company is funded through pivotal readouts set for the first half of 2022, which represent potentially “transformative catalysts”.

Last December, Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) announced the completion of patient enrollment in its pivotal phase 3 trial of I/ONTAK, which is targeted at treating patients with persistent or recurrent cutaneous T-cell lymphoma. The results for the treatment phase are expected in the first half of 2022 and a biologics license application is expected to be filed with the U.S. FDA in the second half of 2022.

On February 15, Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) announced that the FDA has approved permission to proceed with Halo-Lido for the treatment of hemorrhoids. The company is addressing recommendations made by the FDA and expects to start a Phase 2b clinical study in the first half of 2022. Halo-Lido is a proprietary topical formulation that is intended to provide relief to individuals suffering from hemorrhoids.

Reddit investors are talking about Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) and the products the company has to offer. The fact that the company won FDA approval has spurred bullish views in the community and retail investors have initiated long positions in the stock.

9. Mullen Automotive, Inc. (NASDAQ:MULN)

Number of Hedge Fund Holders: 3

Closing Price on March 23: $3.11

Mullen Automotive, Inc. (NASDAQ:MULN) is an electric vehicle company that manufactures and distributes electric vehicles. It operates CarHub, a digital platform that makes use of artificial intelligence and machine learning to offer an interactive solution for buying, selling, and owning a car. The company has been receiving recognition for its revolutionary solid-state battery technology, which will replace traditional lithium-ion batteries in electric vehicles. This February, the company reported test results for its solid-state battery. The results revealed that a 150-kilowatt-hour battery can yield a range of over 600 miles on normal charging, and 300 miles on DC fast charging for 18 minutes. Mullen Automotive, Inc. (NASDAQ:MULN) is working on powering its second-generation EVs with solid-state polymer battery packs. Prototype testing is scheduled for 2025. The company’s first-generation FIVE EV Crossover is due in late 2024 and will be powered by the traditional lithium-ion battery.

This March, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it was featured on Yahoo Finance Live, where the company was recognized for its progress on solid-state battery technology and received positive coverage on CarBuzz. Shortly after this, shares of Mullen Automotive, Inc. (NASDAQ:MULN) went up by roughly 25% and started trading at $2.18, closing at $2.44 on March 17, 2022, the day of the announcement.

As efforts to battle climate change around the world rise and economies transition from being oil-based to electric, EV manufacturers like Mullen Automotive, Inc. (NASDAQ:MULN) exhibit high growth potential. Individual Reddit investors and veteran hedge fund investors are equally bullish on the stock. By the end of the fourth quarter of 2021, 3 hedge funds held stakes in Mullen Automotive, Inc. (NASDAQ:MULN) worth $512,000, up from $318,000 in the preceding quarter with 2 positions.

Mullen Automotive, Inc. (NASDAQ:MULN) is a penny stock this is trending on Reddit this March. Other notable stocks that once traded under $5 are Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc. (NASDAQ:AMZN), and GameStop Corp. (NYSE:GME).

8. Cenntro Electric Group Limited (NASDAQ:CENN)

Number of Hedge Fund Holders: 3

Closing Price on March 23: $2.66

Cenntro Electric Group Limited (NASDAQ:CENN) is an EV technology company that designs and manufactures electric commercial vehicles. The company’s ECVs are designed to serve a variety of corporate and governmental organizations in support of city services, last-mile delivery, and other commercial applications. The company provides autonomous driving solutions empowered by the Cenntro iChassis.

This January, Cenntro Electric Group Limited (NASDAQ:CENN) announced that it hit a production target of 1,623 ECVs for 2021. The company’s highest volume month in 2021 was December when it delivered 628 electric vehicles. Overall, the company has produced over 3,600 ECVs since its inception in 2017. The company plans on scaling production in the first quarter of 2022, through its facilities in Florida and Germany.

On March 7, 2022, Cenntro Electric Group Limited (NASDAQ:CENN) announced its strategic partnership with Mosolf, one of Europe’s largest automotive logistics and service providers, to acquire a 65% equity interest in Mosolf’s subsidiary, Tropos Motors Europe, for EUR 3.25 million. The deal is expected to close in March 2022. As of February 28, Tropos Motors Europe has a distribution network of 50 dealers in Germany and 13 importers in Europe across sixteen countries, including France, Spain, Portugal, the Netherlands, Belgium, Austria, Italy, Denmark, and the Czech Republic, and also sells directly to fleet providers. It is expected that the acquisition will expand Cenntro Electric Group Limited’s (NASDAQ:CENN) distribution network in Europe, the Middle East, and Africa and will add a strategic customer network in Europe.

Cenntro Electric Group Limited (NASDAQ:CENN) is trending on Reddit this March since the announcement of its acquisition of TME. Reddit investors are bullish on the stock and believe it will have a potential upside as we progress in 2022.

By the end of the fourth quarter of 2021, 3 hedge funds were bullish on Cenntro Electric Group Limited (NASDAQ:CENN). The total stakes of these funds amounted to $1.22 million, up from $0.65 million in the preceding quarter with the same number of positions.

7. Northern Dynasty Minerals Ltd. (NYSE:NAK)

Number of Hedge Fund Holders: 5

Closing Price on March 23: $0.42

Northern Dynasty Minerals Ltd. (NYSE:NAK) explores mineral properties in the United States. Its principal mineral property is the Pebble copper-gold-molybdenum project comprising 2,402 mineral claims that span an area of approximately 417 square miles located in southwest Alaska. According to the company, the deposit area contains 80.6 billion pounds of copper, 107.4 million ounces of gold, and 5.6 billion pounds of molybdenum. The project is worth an estimated $400 billion.

This February Northern Dynasty Minerals Ltd. (NYSE:NAK) released a report, authored by IHS Markit, which discussed the economic benefits of the company’s Pebble Project. The Pebble Project’s rich copper reserves could help the U.S. reduce its dependence on imports of copper, as demand surges to support the EV boom and the nation’s transition from being an oil-based economy to going green.

Individual Reddit investors believe in the potential that Northern Dynasty Minerals Ltd. (NYSE:NAK) has. The company is also getting eyed by elite hedge funds. As of the fourth quarter of 2021, Insider Monkey pointed out 5 hedge funds that held stakes in the company, worth more than $10.78 million.

David Iben’s Kopernik Global Investors was the most prominent shareholder in Northern Dynasty Minerals Ltd. (NYSE:NAK) by the end of the fourth quarter of 2021. The fund’s stakes in the company amounted to $10.39 million, which makes up for 0.99% of its 13F portfolio.

6. Galmed Pharmaceuticals Ltd (NASDAQ:GLMD)

Number of Hedge Fund Holders: 5

Closing Price on March 23: $1.51

Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) is an Israel-based clinical-stage biopharmaceutical company that is involved in the development of therapeutics for the treatment of liver diseases. This January, the company announced that the USPTO has granted new patents related to the use of Aramchol, the company’s oral drug for treating non-alcoholic steatohepatitis (NASH) in overweight and diabetic patients. With these latest patents, Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) is strengthening and extending the intellectual-property protection of Aramchol until December 2038. Right after this announcement, Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) gained 5%. The stock closed at $1.51 on March 23, 2022.

Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) is trending among Reddit investors and hedge funds alike. By the end of the fourth quarter of 2021, Insider Monkey spotted Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) on 5 hedge fund portfolios. The total stakes of these funds amounted to $4.27 million.

As of February 23, 2022, Biotechnology Value Fund / BVF Inc is the dominating shareholder in Galmed Pharmaceuticals Ltd (NASDAQ:GLMD). The fund owns over 1.79 million shares of the stock, which amounts to a stake value of $3.27 million. The investment covers 0.11% of Mark Lampert’s hedge fund portfolio.

Investors looking to diversify their portfolios and add stocks with strong business fundamentals should look into Galmed Pharmaceuticals Ltd (NASDAQ:GLMD). Some notable stocks that were once penny stocks include Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc. (NASDAQ:AMZN), and GameStop Corp. (NYSE:GME).

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Disclosure. None. These 10 Penny Stocks are Trending on Reddit is originally published on Insider Monkey.