Title: 13 Penny Stocks with Insider Buying in 2024: How Insiders Are Profiting and What It Means for Investors
In the world of investing, insider transactions have always been a point of interest for market participants. It is widely believed that when insiders are buying a stock, it is likely to see positive movement in the future. A recent study by Mervyn King and Aisla Roell at the London School of Economics further solidified this notion, showing that stocks with insider purchases outperformed the market index in the long term.
However, not all insider trades result in success. Research by James H. Lorie and Victor Niederh found that mimicking insider trades can be profitable in the long term, but not always. It is essential to complement insider trades with proper analysis and research to maximize returns.
In the current market environment, insiders are not only profiting from their own trades but also from the market’s reaction to their activity. This creates a vicious cycle where insiders manipulate stock movements to generate profits. Researchers Dan Givoly and Dan Palmon observed this phenomenon in a study of companies listed on the AMEX in the 1970s.
Using Insider Monkey’s insider trading stock screener, we identified 13 penny stocks that saw insider buying activity in 2024. These stocks range from healthcare to biotech to cybersecurity companies. One notable example is Marpai Inc (NASDAQ:MRAI), where the CEO bought 910,000 shares, resulting in a 60% increase in stock value.
Other companies on the list include Flora Growth Corp (NASDAQ:FLGC), Intrusion Inc. (NASDAQ:INTZ), Modular Medical Inc (NASDAQ:MODD), Corvus Pharmaceuticals Inc (NASDAQ:CRVS), Zura Bio Ltd (NASDAQ:ZURA), Absci Corp (NASDAQ:ABSI), and Tenaya Therapeutics Inc (NASDAQ:TNYA).
Investors can learn valuable insights from insider buying activity and use it as a tool to make informed investment decisions. By paying attention to insider trades and conducting thorough research, investors can potentially benefit from the knowledge and expertise of company insiders.
Overall, insider buying in penny stocks in 2024 presents a unique opportunity for investors to capitalize on market movements and potentially generate significant returns.
