We’re checking in on the latest penny stocks news today with two that investors are watching fall on Friday.
Falling penny stocks come as no surprise considering the volatility the space suffers from. That’s why we always warn that penny stocks can be a risky investment. Not helping are day traders often boosting shares up and running with the profits before a crash.
But that’s not what’s behind the biggest penny stocks losers today. Let’s get into what’s dragging them down below!
Penny Stocks Falling Today: MEI Pharma
MEI Pharma (NASDAQ:MEIP) stock kicks us off as the penny stock tumbles 57.8% in trading Friday morning. That’s the result of a delay to its marketing authorization for zandelisib. A meeting with the U.S. Food and Drug Administration (FDA) resulted in the agency requiring it to complete its ongoing Phase 3 COASTAL first.
It comes as no surprise that a blow like that would hit MEIP stock and heavy trading follows it. The company has traded more than 18 million shares as of this writing. That’s a jump from its daily average trading volume of around 1 million shares.
Penny Stocks Falling Today: Honest Company
Honest Company (NASDAQ:HNST) is our next major penny stock loser with its shares diving 29.3% in morning trading. That’s due to the company’s earnings report for the fourth quarter of 2021 missing estimates. That’s due to earnings per share of -10 cents and revenue of $80.38 million missing Wall Street’s estimates of -7 cents and $83.97 million.
It comes as no surprise that heavy trading is hammering HNST stock after that report. As of this writing, some 13 million shares have changed hands. For comparison, the company’s daily average trading volume is about 1.4 million shares.
While these penny stocks are down, there’s plenty of good news for traders today too!
Luckily, we’ve got it all collected in one place! A few examples include the top penny stocks rising today, what has cannabis stocks heating up, as well as why Sundial Growers (NASDAQ:SNDL) stock is soaring. You can find all of this news at the following links!
More Friday Stock Market News
- Top Penny Stocks Today: Why GNLN and NILE Are Surging Friday
- Cannabis Stocks: Why Are TLRY, SNDL, CGC, ACB, HEXO, CLVR, OGI, HITI Stocks Up Today?
- Why Is Sundial Growers (SNDL) Stock Up Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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
