5 Top Penny Stocks Insiders Decided To Buy In June 2021

These Insiders Decided To Buy Penny Stocks This Month
Penny stocks, blue-chips, small-caps, whatever your focus, sentiment is starting to play a leading role. It’s not just about the next round of Reddit stocks to watch. What began on the social media forum site has exploded across myriad outlets. Now you can find popular topics coming up on TikTok, Facebook, Twitter, StockTwits, and other sites all about “The next AMC” or “this could be like GameStop.” But cutting through all of the hyped-up “ape” posts and haphazard “research” are small nuggets of information you can use to put together a sounds list of penny stocks to watch.

The downside of social media “research” is obvious. Not all people are there to spread valuable information. Many are touting things for their own personal interests. But with such a wide birth of people looking for penny stocks to buy, there are other pieces of useful information that can send you down a rabbit hole of due diligence. For example, one of the more popular topics among retail traders, besides the next round of “short squeeze stocks,” focuses on insiders. I’m not talking about the scandalous Martha Stewart type of insider trading. I’m talking about full transparency from insiders who report their purchases with the SEC.
As far as insider activity goes, most will look for Form 4 filings. These show insiders and their different transactions. The information you’ll see is the date of the transaction(s), the number of shares purchased/sold/issued, the average price per share paid, and any footnotes accompanying the transaction. While this is the most popular Form for insider trades, there are also a few other types you’ll want to be aware of.

[Read More] 4 Top Biotech Penny Stocks To Watch In The Second Half Of June 2021

These are usually less frequently filed but worth knowing about. Form 3s get filed when someone first becomes an insider. Examples of this include new employees/management brought on as officers or directors of a company. This Form shows the initial ownership position in the company’s securities and gets filed within 10 days of becoming an insider.

Then you’ve got Form 5’s. These are somewhat of the “clean up” form. They’re typically filed 45 days after a company’s fiscal year-end and only required when an insider makes at least 1 transaction because of failing to report earlier or from an exemption that wasn’t reported during the year. Certain insider purchases for less than $10,000, for example, may not be required via a Form 4. But they have to get disclosed eventually, and this is where Form 5s come into the picture.

Penny Stocks To Buy [based on insider activity]
Just like analyst ratings, just because insiders are bullish, that doesn’t mean certain penny stocks are guaranteed to go up. Furthermore, some insiders subscribe to predetermined schedules of buying and selling. You’ve also got stock awards for things like employment anniversaries and stock options from contracted work for the company. This is where the footnotes come into play. Keep this in mind when you’re looking for penny stocks with insider buying. Now that we’ve got the basics covered, let’s take a look at some companies with bullish insiders in June.

Precipio Inc. (NASDAQ: PRPO)
Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX)
Evofem Biosciences Inc. (NASDAQ: EVFM)
Ault Global Holdings Inc. (NYSE: DPW)
Penny Stocks To Buy [According To Insiders] #1: Precipio Inc. (NASDAQ: PRPO)
Precipio has been one of the hot biotech penny stocks to watch this year. While it was bullish during the early months of 2021, the bigger attention came after announcing that its rapid COVID-19 test would be available on the Amazon platform. This news sparked a movement in the stock from under $2 to over $9 within a few days. The stock has since settled out but remains above $4 during June.

The company focuses on diagnostic products. This month Precipio launched its HemeScreen Anemia panel. The testing tool is used to help physicians address anemia of unknown causes. This news has helped spark a move in PRPO stock for most of June. Something else to keep in mind is that insiders appear to be bullish as well.

Insider Activity for PRPO Stock
Earlier this month, Co-founder Ahmed Zaki Sabet and CEO Ilan Danieli purchased shares of company stock. Average prices ranged from $3.369 to $3.3713. Though their trades weren’t the largest on this list of penny stocks, they were notable following the big move the stock saw in May.
2. Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX)
Entasis is another one of the biotech penny stocks catching a wave of trading momentum this quarter. Since early May, shares have climbed nearly 80%. The company specifically focuses on antibacterial products and currently expects Phase 3 trial data in its ATTACK study during the second half of the year. The trial is for multidrug-resistant Acinetobacter infections. Healthcare facilities are one of the more common places where this can be spread. The company also has a Phase 3 trial for its zoliflodacin treatment, which Entasis believes can provide a solution for gonorrhea.

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