In the wild world of penny stocks, it’s not often you see insiders putting their own money where their mouth is. But that’s exactly what’s been happening with three small-cap companies lately: IZEA Worldwide (NASDAQ: IZEA), Camber Energy (NYSE: CEI), and Aterian (NASDAQ: ATER).
The most notable insider buying spree has come from IZEA Worldwide CEO Edward H. Murphy. In late November, Murphy scooped up 2,000 shares at an average price of $2.19. This isn’t just chump change, either – it represents a total investment of around $4,380.
So, what’s got Murphy so bullish on IZEA? Well, for starters, the company recently acquired advocate marketing platform Zuberance. This deal gives IZEA a significant foothold in the growing influencer marketing space. Additionally, IZEA has been making strides in profitability, recently reporting its first-ever quarterly profit.
Camber Energy has also seen some insider buying activity recently. In early December, CFO Richard A. Roberts picked up 10,000 shares at a price of around $0.50 per share. This $5,000 investment may seem small compared to Murphy’s IZEA purchase, but it’s still a significant vote of confidence from a key executive.
Camber Energy is a small oil and gas exploration company. While the oil and gas industry has been facing some headwinds lately, Camber Energy has managed to stay afloat thanks to its focus on low-cost production. The company also has a promising exploration portfolio in Texas and Louisiana.
Aterian is a diversified holding company with investments in a variety of industries, including e-commerce, technology, and healthcare. The company has been a bit of a roller coaster ride for investors in recent years, but it’s recently shown signs of a turnaround. In November, Aterian reported strong third-quarter results, and the stock has been on an upward trend since then.
In early December, Aterian CEO Gianfranco Fiorelli purchased 100,000 shares of the company’s stock at a price of around $0.75 per share. This $75,000 investment is a clear signal that Fiorelli believes in Aterian’s future.
Should you follow the insiders?
Just because insiders are buying shares of these companies doesn’t mean you should rush out and do the same. It’s important to remember that penny stocks are inherently risky, and there’s no guarantee that any of these companies will be successful in the long run.
That said, insider buying can be a valuable signal that a company is worth taking a closer look at. If you’re interested in any of these stocks, be sure to do your own research and due diligence before making any investment decisions.
Here are a few additional things to keep in mind when considering penny stocks:
Penny stocks are volatile. Be prepared for the price to swing wildly up and down.
Penny stocks are illiquid. This means it may be difficult to buy or sell shares without impacting the price.
Penny stocks are often pump-and-dump schemes. Be wary of any stock that is being heavily promoted online or on social media.
If you’re looking for high-growth stocks with the potential for big returns, penny stocks may be worth considering. But just remember to do your research and be prepared for the risks involved.
This article is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.