Stock markets skyrocketed on Wednesday. Among the winners were a number of high volume penny stocks, some of which saw their share price increase by over 50%.
The Dow Jones Industrial Average was up 2.1%, or 500 points, the S&P 500 traded 2.4% higher, and NASDAQ advanced by 3%.
While the boost might seem encouraging, some believe that investors may be grasping at straws and ignoring the deteriorating fundamentals of the US economy, which will likely come back to haunt them.
Of course, it’s not all doom and gloom in the markets. There are several opportunities to be found; you just have to look in the right places.
Like any investment, there are pros and cons to investing in penny stocks, and it’s important to do your due diligence when trading stocks.
High volume penny stocks can signal that a company is up to something big or are in an industry that is expected to do well. Of course, high volume doesn’t always mean a stock is worth buying, and some of these stocks should definitely be avoided. Investors should look at a number of factors when deciding which penny stocks to invest in.
With that in mind, here are five hot penny stocks that not only had high volume on April 29 but also saw sizeable gains in their share price.
4 High Volume Penny Stocks: AgEagle Aerial Systems, Inc. (NYSEAMERICAN:UAVS)
AgEagle Aerial Systems, Inc. comes in at the top of the list of high volume penny stocks after seeing over 90 million shares trade hands on Wednesday.
The commercial agricultural drone company saw its share price skyrocket by 160% to $2.30 by market close after experiencing highs of $2.60.
AgEagle saw the sharp uptick after filing a mixed shelf offering of up to $6 million with the US Securities and Exchanges Commission on Wednesday morning, one day prior to its scheduled corporate update conference call.
Earlier this month, the company announced follow-on purchase orders to manufacture commercial drones for package delivery for a major e-commerce company.
According to the release, the follow-up order represents significant new revenue. The new purchase orders relate to the continued manufacturing and assembly of drones that will be used for testing and refining the client’s commercial drone small package delivery vehicles, systems, and operations that are currently in development.
The surge in AgEagle’s share price is very encouraging, but it could increase higher yet as laws loosen around drone delivery, and more companies hop onboard with the new technology.
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The company has already seen an uptick in its popularity, which showed in its 2019 financial results. AgEagle reported drone assembly and product sales revenue of $267,622 for 2019, which is a 178% increase from its 2018 revenue.
AgEagle Aerial Systems has a market cap of $14.8 million, with 23,310,000 shares issued.
4 High Volume Penny Stocks: SM Energy (NYSE:SM)
Next on the list of high volume penny stocks is US-based oil and gas exploration company SM Energy. The company’s stock was up 74.6% to $3.30 on Wednesday after posting surprising Q1 results.
SM Energy saw the uptick after reporting a smaller-than-expected quarterly loss of $0.05 per share, which was much better than the Zacks Consensus Estimate of a $0.21 loss. The company saw a 4% increase in revenue to $355 million during the quarter and an Adjusted EBITDA of $286.0 million, which is up 53% from $186.5 million in Q1 2019.
At the same time, SM Energy announced a reduction in its capital spending budget by 20% in 2020 to better align with lower oil prices. The company also withdrew its production guidance for the year.
It’s encouraging to see SM Energy weathering the current state of the oil market, which sent the prices below zero last week due to US oil storage fears. The oil market did manage to rebound slightly Wednesday after the US reported lower than expected oil inventories.
SM Energy has a market cap of $213.5 million, with 112,989,000 shares issued.
4 High Volume Penny Stocks: Amplify Energy Corp. (NYSE:AMPY)
Third on the list of high volume penny stocks that are up over 50% today is another US-based oil and gas company, Amplify Energy Corp.
On Wednesday, AMPY stock shot up 58.89% to $1.43 on the New York Stock Exchange after seeing 3.6 million shares trade hands. It’s unclear what caused the increase, which came one day after the company announced its upcoming Q1 2020 conference call.
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Much like its oil and gas peers, the company has dropped significantly since the beginning of the year due to the crashing oil market.
Of course, once the oil market rebounds, the company’s share price could increase significantly. Two Wall Street analysts have issued ratings and price targets for Amplify Energy and offered the company an average 12-month price target of $10.25, which suggests a possible upside of 616.78%.
The company’s success, however, is dependent on oil prices, and if they don’t recover by the end of the year, it might spell trouble for independent oil and gas companies like Amplify.
Amplify Energy has a market cap of $33.8 million, with 37,566,000 shares issued.
4 High Volume Penny Stocks: TherapeuticsMD (NASDAQ:TXMD)
Women’s health company TherapeuticsMD is another one of the high volume penny stocks that saw an impressive increase today.
On Wednesday, TherapeuticsMD announced that the US Patent and Trademark Office (USPTO) has issued a patent that covers the labeled indication for ANNOVERA, the first and only long-lasting, patient-controlled, procedure-free, reversible prescription contraceptive option for women.
What’s more, ANNOVERA contains segesterone acetate, a “new chemical entity,” which qualifies the drug for FDA regulatory exclusivity through August 2023 under the Hatch-Waxman Act.
The news sent TXMD stock up 78% to $1.76, with a massive daily trading volume of 23.6 million.
According to TherapeuticsMD’s full-year 2019 financial results, ANNOVERA brought in $6.2 million in net sales revenue last year. The company also reported an increase in sales of $15.2 million of its FDA-approved IMVEXXY.
TherapeuticsMD is expected to report its Q1 2020 results on May 6, which could make or break the stock. Zacks analysts expect the company to post a quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -18.8%. Meanwhile, revenue is expected to be up 207.1% from Q1 2019 at $12.13 million.
Investors who are interested in healthcare penny stocks will definitely want to keep an eye on those results next week.
TXMD stock continued to increase after hours on Wednesday and was up another 11.36% to $1.96 by 6 pm EST. However, the share price is still down 19% since the start of 2020.
TherapeuticsMD has a market cap of $268.6 million, with 271,683,000 shares issued.
Takeaway
The current volatility in the stock market can drive away investors who have a low appetite for risk, which is understandable considering the recent havoc.
For those who are willing to ride the wave, there are some lucrative opportunities to be found in high volume penny stocks. Whether you are interested in gold penny stocks, which are particularly hot right now, or healthcare penny stocks, there are several quality options to consider adding to your portfolio.
Another way to find potential winners is to check out the most popular Robinhood penny stocks to see what companies investors are buying up.
Are there any high volume penny stocks that have been on your radar? Tell us about them in the comments!
Featured Image: Depositphotos ©SergeyP
