The Dow Jones Industrial Average surged over 450 points on Friday, indicating a positive market sentiment. However, for those interested in penny stocks, insider trading activity can provide valuable insights into the confidence levels surrounding individual companies. When insiders, such as executives or large shareholders, purchase or sell shares, it often reflects their belief in the company’s future performance.
Here’s a look at notable insider transactions in three penny stocks:
System1, Inc. (SST)
Cee Holdings Trust, a 10% owner of System1, acquired 46,373 shares at an average price of $1.22, representing a total investment of approximately $56,378. This purchase comes on the heels of System1’s impressive quarterly earnings announcement on August 8th. System1 specializes in developing technology and data science for a responsive acquisition marketing platform.
TherapeuticsMD, Inc. (TXMD)
Cooper C. Collins, a director at TherapeuticsMD, purchased 1,200 shares at an average price of $1.70, spending about $2,039. This transaction occurred shortly after the company reported a second-quarter loss of 9 cents per share on August 12th. TherapeuticsMD operates as a pharmaceutical royalty company, earning royalties from products licensed to other pharmaceutical companies.
Ault Alliance, Inc. (AULT)
Milton C Ault III, the Executive Chairman of Ault Alliance, bought 2,800 shares at an average price of $0.23, investing around $655. This purchase followed Ault Alliance’s announcement of a monthly cash dividend of $0.2708333 per share for their 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock on August 20th. Ault Alliance is a diversified holding company with a range of business interests, including data center operations, Bitcoin mining, and mission-critical products for various industries.
By tracking insider transactions, investors and traders can gain valuable insights into the market sentiment surrounding penny stocks. It’s important to note that insider trading activity is just one factor to consider when making investment decisions and should be evaluated in conjunction with other fundamental and technical analysis.
