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10 Popular Penny Stocks on Robinhood

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·9 min read
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In this article, we discuss the 10 popular penny stocks on Robinhood. If you want to skip our detailed analysis of these stocks, go directly to the 5 Popular Penny Stocks on Robinhood.

Robinhood, the popular stock trading application with millions of users, has taken the market by storm over the past couple of years, becoming the platform of choice for retail investors keen to invest in penny stocks that have significant upside potential. Despite controversy surrounding the decisions of the firm in the GameStop Corp. (NYSE: GME) saga earlier this year, the platform continues to grow. In the first quarter of 2021, the user base of the application grew 151% year-on-year to 18 million. The revenue over the period registered a 309% Y/Y increase.

Robinhood users have an average age of around 30 and prefer to invest in growth stocks Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. However, biopharma firm Pfizer Inc. (NYSE: PFE) has also been among some of the most popular stocks on the platform in the wake of the coronavirus crises. Despite the dominance of these pricey offerings, there are several penny stocks that Robinhood traders have shown active interest in over the past few weeks. Some of these stocks are listed and discussed below in detail.

Robinhood has made the stock market more accessible to people from all kinds of different ages and backgrounds, resulting in an influx of retail investor interest in equities that has shattered all records. The organic growth of the platform has been impressive. The firm claims that nearly 80% of users on the application sign up through referrals or on their own, a unique feat in a world dominated by advertising metrics. The company is planning to go public soon and is valued at over $40 billion, making it one of the most lucrative American startups.

However, Robinhood will have to navigate regulatory crackdowns, a dramatic lull in the prices of crypto stocks, and inflation fears leading to decreased retail investor interest in stocks as it tries to keep the growth momentum going in the second half of the year. According to investment bank Goldman Sachs, the retail investor boom in the market is just beginning, and as hundreds of billions of dollars are poured into equities by retail investors in the next few months, Robinhood could be one of the biggest beneficiaries of this windfall.

There is little doubt that Robinhood has disrupted the world of finance. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Photo by Adam Nowakowski on Unsplash

With this context in mind, here is our list of the 10 popular penny stocks on Robinhood. These were ranked keeping in mind their popularity on Robinhood, hedge fund sentiment, and business fundamentals of each.

Popular Penny Stocks on Robinhood

10. Camber Energy, Inc. (NYSE: CEI)

Number of Hedge Fund Holders: N/A

Camber Energy, Inc. (NYSE: CEI) is an oil and gas company that operates from Texas. It is placed tenth on our list of 10 popular penny stocks on Robinhood. The company’s shares have plunged 47% over the course of the past twelve months. The firm was founded in 2003 and was previously known as Lucas Energy. The firm controls large reserves of crude oil and natural gas. The stock stands to gain from the present boom in oil prices and analyst predictions for a good year ahead for oil companies.

In February, Camber Energy, Inc. (NYSE: CEI) announced that it had completed a merger with Viking Energy in a deal worth close to $20 million. The merger was announced in January 2020 after a deal with Linear Star Holdings fell through.

On May 25, the New York Stock Exchange issued a notification to Camber Energy, Inc. (NYSE: CEI) claiming that the firm was not in compliance with listing standards. The share price of the firm fell 10% after the news became public.

Unlike more expensive options like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Pfizer Inc. (NYSE: PFE), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Camber Energy, Inc. (NYSE: CEI) is one of the popular penny stocks on Robinhood.

9. Oragenics, Inc. (NYSE: OGEN)

Number of Hedge Fund Holders: N/A

Oragenics, Inc. (NYSE: OGEN) is a Florida-based biotechnology company. It is ranked ninth on our list of 10 popular penny stocks on Robinhood. The stock has offered investors returns exceeding 47% over the course of the past six months. The company concentrates on the development of drugs for the treatment of infectious diseases. Some of the leading product candidates for the firm include Terra CoV-2 and LPT3-04. The former is a vaccine for novel severe acute respiratory syndrome coronavirus and the latter is a weight loss drug.

In late February, Oragenics, Inc. (NYSE: OGEN) announced that it had raised $20 million from the sale of shares through a previous agreement with Alliance Global Partners. The company said it planned to use the proceeds to fund the development of a COVID-19 vaccine.

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Oragenics, Inc. (NYSE: OGEN) with 370,521 shares worth more than $336,000.

Unlike more expensive options like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Pfizer Inc. (NYSE: PFE), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Oragenics, Inc. (NYSE: OGEN) is one of the popular penny stocks on Robinhood.

8. Superior Drilling Products, Inc. (NYSE: SDPI)

Number of Hedge Fund Holders: 2

Superior Drilling Products, Inc. (NYSE: SDPI) is an energy company based in Utah. It is placed eighth on our list of 10 popular penny stocks on Robinhood. The company’s shares have returned 31% to investors in the past year. The firm primarily markets drilling tool technology with clients spread across the globe. On May 26, the firm disclosed that it had received a non-compliance notice from the New York Stock Exchange. The firm affirmed that a plan for regaining compliance had been approved by the exchange.

In earnings results for the first quarter of 2021, posted on May 12, Superior Drilling Products, Inc. (NYSE: SDPI) reported earnings per share of -$0.04, beating market predictions by $0.01. The revenue over the period was $2.4 million, beating market predictions by $0.3 million.

At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $214,000 in Superior Drilling Products, Inc. (NYSE: SDPI), up from 1 in the previous quarter worth $298,000.

Unlike more expensive options like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Pfizer Inc. (NYSE: PFE), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Superior Drilling Products, Inc. (NYSE: SDPI) is one of the popular penny stocks on Robinhood.

7. Cyren Ltd. (NASDAQ: CYRN)

Number of Hedge Fund Holders: 3

Cyren Ltd. (NASDAQ: CYRN) is an Israel-based software company that provides cybersecurity solutions. It is ranked seventh on our list of 10 popular penny stocks on Robinhood. The stock has plunged 42% in the past twelve months. The company was founded in 1991 and has operations in Europe and North America, in addition to Israel. Some of the products the firm offers include email security engine, malware detection engine, and web browser filtering, among several others.

On May 17, Cyren Ltd. (NASDAQ: CYRN) posted earnings for the first three months of 2021, reporting earnings per share of -$0.05, in line with estimates. The revenue for the first quarter was $8.7 million, down 9% year-on-year.

At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.8 million in Cyren Ltd. (NASDAQ: CYRN), the same as in the previous quarter worth $3.1 million.

Unlike more expensive options like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Pfizer Inc. (NYSE: PFE), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Cyren Ltd. (NASDAQ: CYRN) is one of the popular penny stocks on Robinhood.

6. Great Panther Mining Limited (NYSE: GPL)

Number of Hedge Fund Holders: 7

Great Panther Mining Limited (NYSE: GPL) is a Canadian mining and exploration company. It is placed sixth on our list of 10 popular penny stocks on Robinhood. The company’s shares have plunged 7% in value in the past year. The firm posted earnings for the first quarter on May 5, reporting earnings per share of $0.00, missing market predictions by $0.03. The revenue for the first three months of 2021 was more than $52 million, up 9% year-on-year. The firm was founded in 1965.

On May 25, Great Panther Mining Limited (NYSE: GPL) announced that it had halted operations at a facility in Brazil due to wall movements. The halt in operations also caused the firm to lower guidance numbers for annual production in this fiscal year.

At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Great Panther Mining Limited (NYSE: GPL), down from 8 in the previous quarter worth $9 million.

Unlike more expensive options like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Pfizer Inc. (NYSE: PFE), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Great Panther Mining Limited (NYSE: GPL) is one of the popular penny stocks on Robinhood.

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Disclose. None. 10 Popular Penny Stocks on Robinhood is originally published on Insider Monkey.