In this article, we discuss 5 penny stocks with upcoming growth catalysts. You can check out our detailed discussion on penny stocks by clicking 10 Penny Stocks with Upcoming Growth Catalysts.
5. Osceola Gold, Inc. (OTC:OSCI)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.16
Osceola Gold, Inc. (OTC:OSCI) is a precious metals mining company that is primarily focused on the exploration of gold. The company is based in Weirton, West Virginia. The company’s stock has gained close to 443% over the last 12 months.
Osceola Gold, Inc. (OTC:OSCI) announced on February 22 that in order to maximize its operations and achieve its production goals for 2022, the company has partnered with Sajeinidus Agromine S.A. on behalf of 40 Brightwater LLC, a New York-based company, to receive funding of $50 million. The new mining project is expected to start in the first week of April 2022. The project will certainly benefit the firm given that gold prices are soaring.
4. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Number of Hedge Fund Holders: 2
Share Price as of March 14: $2.50
Red Cat Holdings, Inc. (NASDAQ:RCAT) was incorporated in 1984 and is based in Humacao, Puerto Rico, providing First Person View (FPV) video goggles and equipment to the drone industry.
On March 14, Red Cat Holdings, Inc. (NASDAQ:RCAT) stock gained 2% in premarket trading after the company announced that its subsidiary, Teal Drones, was awarded a contract by the Department of Defense’s Defense Innovation Unit and the U.S. Army to develop a compact next-generation aerial system that can be used for surveillance and other duties. The aerial system will be focused on building advanced autonomous capabilities rather than having a pilot or controller at the helm.
Insider Monkey’s Q4 database shows that Sabby Capital and Citadel Investment Group were the lone funds to own stakes in Red Cat Holdings, Inc. (NASDAQ:RCAT), with positions worth $2.94 million, compared to 4 funds in the prior quarter, holding stakes in the company worth close to $5 million.
3. CynergisTek, Inc. (NYSE:CTEK)
Number of Hedge Fund Holders: 3
Share Price as of March 14: $1.31
CynergisTek, Inc. (NYSE:CTEK) is a Texas-based cybersecurity company that serves the healthcare, education, financial services, government, internet and media, and manufacturing industries with its products and services.
On March 3, CynergisTek, Inc. (NYSE:CTEK) announced that it had renewed a six-figure vendor security management contract for three more years with a leading network of healthcare providers from the Mid-Atlantic region. CynergisTek, Inc. (NYSE:CTEK) will provide third-party risk management services to this client, and this service deal with the healthcare network was initially agreed upon in 2013.
A total of 3 hedge funds were bullish on CynergisTek, Inc. (NYSE:CTEK) in the fourth quarter of 2021, with collective stakes valued at $273,000. According to Insider Monkey’s data, Renaissance Technologies, Two Sigma Advisors, and Millennium Management held long positions in the stock.
Here is what Long Cast Advisers had to say about CynergisTek, Inc. (NYSE:CTEK) in its Q4 2020 investor letter:
“CTEK remains the big drain on returns. What I wrote last quarter, about the frustration and the opportunity, remains relevant. My patience in the company was recently enhanced via conversations with industry participants as well as by December’s announced entry into the CMMC market. This is a new regulated market that requires DoD subcontractors to use third party certification assessments (C3PAO) to audit their cybersecurity practices, previously done by self-audit. While I expect the market to be competitive (and eventually saturated), they are currently one of only 22 approved to perform these assessments. I’m “hanging my hat” not on CMMC since the approval process is a low bar, but on the strong brand in the important healthcare cybersecurity niche. At less than 1x sales, I think the stock is cheap. At some point I think it will return to growth and our patience will be rewarded.”
2. Minerva Neurosciences, Inc. (NASDAQ:NERV)
Number of Hedge Fund Holders: 5
Share Price as of March 14: $0.658
Minerva Neurosciences, Inc. (NASDAQ:NERV) is a clinical stage biopharmaceutical company headquartered in Waltham, Massachusetts. The company is focused on the treatment of central nervous system diseases.
On February 28, Minerva Neurosciences, Inc. (NASDAQ:NERV) announced the publication of its Roluperidone Phase 3 study results, which suggested that negative symptoms in patients with schizophrenia can potentially be treated, in addition to improving the everyday functions of patients. The clinical study demonstrated that Roluperidone is superior to placebo when it comes to treating schizophrenia.
H.C. Wainwright analyst Douglas Tsao lowered his price target on Minerva Neurosciences, Inc. (NASDAQ:NERV) to $5 from $10 on March 4 and reiterated his ‘Buy’ rating on the shares. There is upside to the shares as the company discusses evidence for Roluperidone in treating the negative symptoms of schizophrenia and its plans to file a new drug application in the first half of 2022, the analyst informed investors in a bullish case for the stock.
A total of 5 hedge funds were long Minerva Neurosciences, Inc. (NASDAQ:NERV) in Q4 2021, compared to 9 funds in the earlier quarter. Steven Boyd’s Armistice Capital is the leading shareholder of the company among that group with more than 1 million shares worth $820,000.
1. Exela Technologies, Inc. (NASDAQ:XELA)
Number of Hedge Fund Holders: 11
Share Price as of March 14: $0.5296
Exela Technologies, Inc. (NASDAQ:XELA) is a Texas-based company that specializes in providing transaction processing services, enterprise information management, document management, and digital business process solutions to customers worldwide.
On March 14, Exela Technologies, Inc. (NASDAQ:XELA) stock gained 5% after the company launched ExelaPay and acquired Corduro, a provider of scalable payment processing and business management solutions. This acquisition will equip Exela Technologies, Inc. (NASDAQ:XELA) with the technology to enable payment acquiring and processing services across its XBP network.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 11 funds were bullish on Exela Technologies, Inc. (NASDAQ:XELA), up from 7 funds in the quarter earlier. Anand Parekh’s Alyeska Investment Group is the leading shareholder of the company out of those 11 funds, with 2.6 million shares worth $2.36 million.
You can also take a look at 10 Best Small Cap Stocks To Buy for 2022 and 10 Undervalued Dividend Kings To Buy In 2022.
