In this article, we discuss the 12 penny stocks most popular on Reddit and Robinhood. If you want to skip our detailed analysis of these stocks, go directly to the 5 Penny Stocks Most Popular on Reddit and Robinhood.
Retail investors who use internet platforms like Reddit to exchange ideas and stock trading applications like Robinhood Markets, Inc. (NASDAQ:HOOD) to make trades have emerged as a dominant market force in recent months, gaining stardom through the GameStop and AMC Entertainment short squeezes earlier this year and using the fame to organize around penny growth offerings. According to Marketplace Fairness, the most popular online brokerages in the United States were host to over 100 million accounts for retail investors in early 2021.
This number has grown by leaps and bounds since. Robinhood Markets, Inc. (NASDAQ:HOOD), the most popular online trading app where the average age of users is around 31, debuted on the market in late July, raising close to $2 billion at the offering and was valued at around $32 billion. The company had hoped to fetch a valuation of $35 billion but investors were skeptical about regulatory issues and there was retail investor “anger” against the firm for imposition of trading curbs in the meme stock frenzy in January.
Robinhood Markets, Inc. (NASDAQ:HOOD) has been hammered in recent weeks after the initial stock lock-up period after the IPO expired and lots of shares traded hands at the market. A third quarter earnings miss and reports of a massive hack that exposed users have added to the concerns around the company. A larger market shift towards safer value options, in light of inflation concerns, has also resulted in a mass exodus from the stock. The shares have slid over 40% in the past four weeks.
Despite the bleak near-term outlook, hedge funds have been buying the stock keeping in mind the growth potential of the firm in the long-term. At the end of the third quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Robinhood Markets, Inc. (NASDAQ:HOOD). Among the hedge funds being tracked by Insider Monkey, California-based investment firm Greenoaks Capital is a leading shareholder in the company with 22 million shares worth more than $953 million.
In addition to Robinhood, the rise in popularity of Reddit, especially in the finance world, also deserves a mention. The company recently raised around $700 million at a funding round and was valued at more than $10 billion. The user base of the firm will soon touch 500 million. Some of the stocks presently trending on Reddit and Robinhood include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), among others.
Our Methodology
The companies were identified by judging the hype around them on Reddit and Robinhood. Upcoming growth catalysts, analyst ratings, and business fundamentals of each stock were also considered in a bid to separate the best from the rest.
Readers are also provided with exclusive hedge fund sentiment data to better inform their investment choices. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Penny Stocks Most Popular on Reddit and Robinhood
12. Vallon Pharmaceuticals, Inc. (NASDAQ:VLON)
Number of Hedge Fund Holders: 1
Vallon Pharmaceuticals, Inc. (NASDAQ: VLON) is a biopharma firm that focuses on the development of drugs for treatment of rare disorders in the central nervous system. The short interest on the stock has climbed above 22% and Redditors have been piling into the shares through Robinhood in hopes of initiating a short squeeze.
HC Wainwright analyst Raghuram Selvaraju recently initiated coverage of Vallon Pharmaceuticals, Inc. (NASDAQ:VLON) stock with a Buy rating and a price target of $12, identifying the firm as an “emerging” specialty pharma company with novel formulation technology.
At the end of the third quarter of 2021, 1 hedge fund in the database of Insider Monkey held stakes worth $1.4 million in Vallon Pharmaceuticals, Inc. (NASDAQ:VLON), the same as in the preceding quarter worth $761,000.
11. Globalstar, Inc. (NYSE:GSAT)
Number of Hedge Fund Holders: 11
Globalstar, Inc. (NYSE:GSAT) provides mobile satellite services. The company recently beat market estimates on revenue for the third quarter by more than $4 million. The stock has returned more than 300% to investors in the past twelve months.
B Riley analyst Mike Crawford recently reiterated a Buy rating on Globalstar, Inc. (NYSE:GSAT) stock with a price target of $3.25, urging investors to buy the stock based on iPhone inclusion evidence. The Band 53 of Globalstar is available on international and US versions of the Apple phone.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $134 million in Globalstar, Inc. (NYSE:GSAT), the same as in the previous quarter worth $166 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Mudrick Capital Management is a leading shareholder in Globalstar, Inc. (NYSE:GSAT) with 69 million shares worth more than $115 million.
10. Applied UV, Inc. (NASDAQ:AUVI)
Number of Hedge Fund Holders: N/A
Applied UV, Inc. (NASDAQ:AUVI) makes and sells technologies for infection control and purification. On December 1, the share price of the firm jumped over 12% after it announced that a prestigious biomedical facility in Thailand would be installing Airocides, a key product of the company.
Applied UV, Inc. (NASDAQ:AUVI) posted earnings for the third quarter on November 16, reporting a revenue of $3.55 million, up more than 127% compared to the revenue over the same period last year and beating estimates by $0.6 million.
Applied UV, Inc. (NASDAQ:AUVI) stock has rallied in the past few months after the company announced the acquisition of KES Science & Technology and JJS Technologies for $4.3 million. SteriLumen, a subsidiary of Applied UV, closed the deal.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Applied UV, Inc. (NASDAQ:AUVI) is one of the stocks attracting the interest of retail investors.
9. OceanPal Inc. (NASDAQ:OP)
Number of Hedge Fund Holders: N/A
OceanPal Inc. (NASDAQ:OP) provides ocean transportation services. The firm owns three dry bulk carriers and engages in the transportation of iron ore, coal, grains, bauxite, phosphate, and fertilizers, among other things.
OceanPal Inc. (NASDAQ:OP) began trading on the NASDAQ exchange in late November this year. In early December, the firm announced that it had entered into a contract for Calipso, a dry bulk vessel it owns, at a gross charter of $18,750 per day.
OceanPal Inc. (NASDAQ:OP) also revealed that the vessel had previously been chartered for $10,400 per day. The Calipso is a 73,691 dwt Panamax dry bulk vessel. It was built in 2005. The new contract for the vessel will expire in around 15-20 days.
8. MoSys, Inc. (NASDAQ:MOSY)
Number of Hedge Fund Holders: 1
MoSys, Inc. (NASDAQ:MOSY) is a semiconductor firm based in California. The integrated circuits that the firm sells are used in products such as high-speed cloud networking, communications, security appliances, and computing.
MoSys, Inc. (NASDAQ:MOSY) has a market cap of $35 million and posted over $6 million in revenue last year. It was founded in 1991 and has a gross profit margin of 66%.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in MoSys, Inc. (NASDAQ:MOSY) with 23,968 shares worth more than $119,000.
7. Phunware, Inc. (NASDAQ:PHUN)
Number of Hedge Fund Holders: 1
Phunware, Inc. (NASDAQ:PHUN) owns and runs a software platform for mobile portfolios. The stock has become popular among Redditors since the company started buying Bitcoin in November. On December 9, the firm bought 100 additional Bitcoins for $4.8 million.
HC Wainwright analyst Scott Buck recently maintained a Buy rating on Phunware, Inc. (NASDAQ:PHUN) stock and raised the price target to $5.5 from $2, noting that improved liquidity and multiple growth drivers would drive investment in the firm through 2022.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Phunware, Inc. (NASDAQ:PHUN) with 41,237 shares worth more than $38,000.
6. NuZee, Inc. (NASDAQ:NUZE)
Number of Hedge Fund Holders: 2
NuZee, Inc. (NASDAQ:NUZE) is a specialty coffee firm. Last year, in a bid to support eco-friendly brews, the company had signed a co-packaging agreement with Golden Ratio, an Austrian startup that roasts gold coffee.
NuZee, Inc. (NASDAQ:NUZE) operates in North America, Japan, Latin America, and South Korea. The brands under which it sells coffee include Barista, Twin Peaks, and Pine Ranch, among others.
At the end of the third quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $1.2 million in NuZee, Inc. (NASDAQ:NUZE), the same as in the preceding quarter worth $2.1 million.
Among the hedge funds being tracked by Insider Monkey, New Jersey-based firm Sabby Capital is a leading shareholder in NuZee, Inc. (NASDAQ:NUZE) with 499,047 shares worth more than $1 million.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), NuZee, Inc. (NASDAQ:NUZE) is one of the stocks on the radar of hedge funds.
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Disclosure. None. 12 Penny Stocks Most Popular on Reddit and Robinhood is originally published on Insider Monkey.
