There are many ways to find the best penny stocks to buy, including hunting for chart set-ups and looking for unusual trading activity. Others focus their strategy around finding top stocks under $1 or even below $0.50 that might be considered a good long shot investment opportunity by investing early. Another common trend today among retail traders is “following” big money. This means following which insiders buy or sell shares and seeing where they’re putting their own money.
It’s interesting to see this trend persist because, until the pandemic, many traders were looking for market momentum. Now, it’s all about data. Where is “the crowd” looking right now? Which penny stocks are popular on big social media sites like Reddit or Twitter? What information can be used to gain an edge and identify trends earlier than the next trader?
Insider activity, politician purchases, sales, and unusual activity are becoming essential data points for today’s retail investors. The good part is that most of this information is already public domain. You need to know where to look and what to look for to put the puzzle pieces together.
Penny Stocks To Buy [according to insiders]
Today we look at this data and put it together to give you more insight into insider activity. What have been the most recent market trends, and are these the best penny stocks to buy right now? That is an answer I’ll leave up to you. For now, we look at three penny stocks insiders decided to buy in February 2022.
U.S. Xpress Enterprises Inc. (NYSE: USX)
There’s no secret that supply chain disruptions have become a massive issue for the global economy. Whether we’re talking about the problems in Canada or a more general trend of logistics industry strain, it has all contributed to the bigger picture of rising costs. U.S. Xpress Enterprises specializes in asset-based truckload carrying in the U.S. Its services include over-the-road and brokerage solutions in addition to dedicated fleet services to large shipping companies.
Since reporting its Q4 2021 results, USX has experienced a significant amount of volatility. Shares dipped from over $4 to lows of nearly $3 after the company reported worse than expected earnings per share, in addition to highlighting continued challenges negatively impacting its scalability. Driver shortages and capacity constraints brought to light some of the continuing issues of a post-pandemic economy.
Regardless of the results, sentiment has become more upbeat thanks to a new deal with Aurora Innovations (NASDAQ: AUR). The two companies plan on collaborating on a proposed deployment of the Aurora Driver in U.S. Xpress operations. In particular, the strategy is to fine-tune Aurora’s autonomous Driver-as-a-Service product, Aurora Horizon, to improve deployment efficiency at a commercial scale.
USX Insider Trading
In light of reopening efforts and new engagements with companies like Aurora, it looks like insiders are becoming more bullish on the company. Since mid-February, officers and directors have bought up shares of USX stock. More than 80,000 shares were purchased at average prices in the range of $3.3893 and $3.7371. For the full list of USX stock filings, click here.
Imara Inc. (NASDAQ: IMRA)
Like U.S. Xpress, Imara has been under pressure recently. The biopharmaceuticals company experienced a “sell the news” event toward the end of January. Imara received FDA clearance of its Investigational New Drug application for tovinontrine (IMR0687). This is the company’s treatment for heart failure and is planned for a Phase 2 trial next quarter for evaluation of patients 45 years and older with persistent heart failure with preserved ejection fraction (HFpEF) symptoms. Trial subjects will be dosed for 16 weeks.
Despite the good news, IMRA stock has slid lower during the following weeks. But a recent presentation at the SVB Leerink Global healthcare Conference may have brought back some bullish sentiment. Imara’s president and CEO, Rahul Ballal, Ph.D., participated in a fireside chat at the conference last Thursday (2/17). Since then, IMRA stock not only experienced trading volumes that were well-above-average, share prices also surged higher.
IMRA Insider Trading
Adding to some of the excitement is insider activity in IMRA stock. In particular, Director David Mott has come into the spotlight. His purchases began on February 10th, with the most recent buy reported on February 17th. In total, Mott reported purchasing more than 70,000 shares at average prices between $1.17 and $1.29. For the full list of IMRA stock filings, click here.
Sensei Biotherapeutics Inc. (NASDAQ: SNSE)
Sensei Biotherapeutics is another biotech penny stock to watch right now with insider buying. The company specializes in cancer therapeutics, including two treatment platforms: TMAb and ImmunoPhage. These have led to the developments of Sensei’s SNS-101 in anti-tumor immune treatments and SNS-401-NG currently in preclinical development for treating Merkel Cell Carcinoma.
Like Imara, Sensei has also gained new momentum following a recent industry presentation. Last week, Chief R&D Officer Dr. Robert Pierce participated in a fireside chat at the Citi 2022 Virtual Immuno-Oncology Summit. A few days later, SNSE stock experienced a surge of volume, which was the highest of the year so far.
SNSE Insider Trading
February has been a very active month for SNSE stock insiders. Thousands of shares were purchased by directors, and a 14.5% stake was reported by H&S Investments I LP. For the full list of SNSE stock filings, click here.
Penny Stocks With Insider Buying
What does insider buying or selling mean when it comes to stocks? Ultimately, what others are trading is good to know, depending on your strategy. But it shouldn’t be the only thing you look at to make your investment decisions. In addition, you’ve also got to consider your approach to investing versus the insiders’ styles.
One insider might have purchased $1 million in stock, but that may only account for 1% of their total investible cash. Meanwhile, a $1 million position could equate to the entire net worth of someone else. The bottom line is using the data to your advantage, and insider activity is one point that you could fold into your strategy.
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