3 Penny Stocks to Buy Now: May 2024

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Penny stocks to buy carry a considerable amount of risk. That’s why we include the disclaimer at the tail-end of this article. It’s also why the Securities & Exchange Commission warns

“Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”

While you may get lucky and uncover the next Apple (NASDAQ:AAPL) or Advanced Micro Devices (NASDAQ:AMD), you really have to dig through a lot of garbage. It is not impossible. You just have to take the time to do due diligence with company and industry fundamentals and SEC filings and see if company insiders are putting their money where their mouth is.

In fact, here are three interesting penny stocks to buy where insiders have been buying.


EVgo fast charging station

Source: Sundry Photography / Shutterstock.com

Just a few days ago, the Chief Executive Officer and director of EVgo (NASDAQ:EVGOBadar Khan bought 125,000 shares of the EV charging stock. Shares were bought at $2.01 each, valuing the transaction at about $251,250. 

Even better, the EV charging stock is just starting to pivot higher after posting improved earnings. In the first quarter, the company posted an EBITDA loss of $7.2 million on sales of $55.2 million. Analysts were looking for a loss of $13.3 million on sales of $45.2 million. The company also ended the quarter with 3,200 charging stalls — up about 38% year over year. The company also expects to breakeven on adjusted EBITDA by 2025.

According to analysts at RBC Capital, EVGO is well-positioned to benefit as the auto industry moves towards electrification. Last trading at $2.23, I’d like to see it double, if not triple — especially with electric vehicle sales accelerating again and growing EV charging demand.

Zura Bio (ZURA)

Biotechnology stocks, biomedical stocks

Source: aslysun / Shutterstock.com

Zura Bio (NASDAQ:ZURA) is a clinical-stage biotech that is designing treatments for immune and inflammatory disorders. At the moment, it is developing three assets that have completed Phase 1/1b studies and are Phase 2 ready. 

With its lead drug candidate tibulizumab, for example, the company is on track to start Phase II clinical trials by the fourth quarter of 2024 for SSc (systemic scleroderma, a chronic autoimmune disease), and Phase II trials for the treatment of HS (hidradenitis suppurativa, a long-term inflammatory recurrent skin condition) by 2025.

In addition, in late April Zura Bio director Someit Sidhu bought just over 1.186 million shares for about $3.7 million. Since then, the stock ran from $3.20 to a high of $6.31. Now at $5.52, there’s still upside opportunity. For one, analysts at Oppenheimer just raised its price target on the stock to $21 following earnings.

Piper Sandler analysts have an overweight rating, with a price target of $26. The firm says ZURA could become a key immunology player. Its “three assets, tibulizumab, ZB-168 and torudokimab, each have pipeline-in-a-product opportunity,” added the firm.

ZURA just recently crossed over the $5 level, but it’s still worth adding here.

Flora Growth (FLGC)

scientist checking organic hemp wild plants in a cannabis weed commercial greenhouse. Concept of herbal alternative medicine, cbd oil, pharmaceutical industry. Cannabis stocks, FLGC stocks

Source: Chokniti-Studio / Shutterstock.com

Another one of the top penny stocks to buy is organic cannabis and pharmaceutical-grade medical products stock Flora Growth (NASDAQ:FLGC), which could see higher highs.

For one, the company’s CEO recently bought 526,315 shares of FLGC at $1.90 a share. Now at $1.25, the CEO is down on the stock, but there’s still plenty of upside potential here.

More Americans (about 88%) want to see cannabis legalization, according to a Pew Research poll. The Drug Enforcement Administration just said it would reclassify cannabis as a Schedule III drug. And we also have to remember that Germany just legalized its use, which could set off a chain reaction of further approval throughout Europe. In addition, Senate Democrats just introduced a bill to federally legalize cannabis. 

The company also just acquired TruHC Pharma to strengthen its position in Germany, which could soon become of the largest legal cannabis markets. The deal will also give FLGC licenses for EU-GMP (European Union Good Manufacturing Practice), which will also help it thrive in the German market.

On Penny Stocks and Low-Volume Stocks:  With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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