Today, risk-on sentiment is playing into various penny stocks. We’re seeing broadly positive sentiment in this space taking shares of a number of penny stocks rocketing higher.
In general, penny stocks refer to companies trading for less than $5 per share, although some investors are looking for equities below $1. Perhaps more accurately defined, penny stocks today have market capitalizations well below $1 billion.
These five companies below fit the profile of penny stocks that are seeing massive volatility today. Let’s look at what’s going on with these big movers.
- Tonix Pharmaceuticals (NASDAQ:TNXP) — up 16% in early morning trading
- Onconova Therapeutics (NASDAQ:ONTX) — up 14% in early morning trading
- American Resources (NASDAQ:AREC) — up 9%
- Lipocine (NASDAQ:LPCN) — up 21%
- Zhongchao (NASDAQ:ZCMD) — up 45%
Penny Stocks on the Move
Tonix is moving higher today as investors digest news from the company’s clinical trial preliminary results. The company’s stock price is up 16% in early morning trading. This comes amid positive speculation the development of its vaccine for the coronavirus will prove successful.
Onconova saw a double-digit surge today on little news. The company did report earnings last week which beat expectations. It appears biotechs are catching a bid today, as investors ride this wave of sentiment higher. Investors appear to remain bullish on Onconova’s core breast cancer drug.
American Resources shares are up 9% today as the company announced the commercialization of a rare earth elements processing facility. Rare earth elements are heavily used in the development of battery technology. The recent surge in EV stocks amid strong secular growth in electrification trends has such stocks skyrocketing recently. Today is no different.
Lipocine shares are dramatically higher today, also on little news. However, this company has seen a near-40% jump since early March when it announced positive results for its core treatment of non-alcoholic steatohepatitis (NASH) and hepatic fibrosis.
Zhongchao climbed more than 45% in earlier trading after the company announced it was renewing a partnership around its core treatment of pulmonary hypertension. This partnership has given the company significant clout among physicians dealing with hypertension, and investors seem to believe this is a key catalyst for the company in its bid to capture market share moving forward.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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