Three Penny Stocks Robinhood Investors are Buying Today
June 15 2021 - 6:58PM
Finscreener.org
Robinhood is a discount broker that has
gained massive traction in the last few years. The number of retail
traders on Robinhood has increased at a rapid clip due to its
easy-to-use interface and brokerage-fee trades. As investors tend
to start their investment journey with a small amount of capital,
they look to purchase lower-priced penny stocks.
Generally, stocks trading below $5 are called
penny stocks. Here, we take a look at some three penny stocks that
are popular among Robinhood’s retail investors.
OrganiGram
Holdings
Shares of OrganiGram Holdings (NASDAQ:
OGI)
are currently priced at $3.17 and have already doubled
year-to-date. However, OGI stock is down 62% from its record
high and has underperformed broader markets in the last two
years.
In its most recent quarter, OGI’s
sales were down 37% year over year at $14.6 million which is
less than impressive given that cannabis sales were staging a
comeback after a pandemic hit-year. Cannabis was also declared as
an essential product in Canada and was available for curbside
pickups and deliveries.
OrganiGram claimed its revenue was impacted
due to pandemic-related production as well as processing
disruptions. Further, lower wholesale revenue and falling product
prices exacerbated the decline.
OGI also reported a negative EBITDA of $8.6
million in the quarter which was significantly higher than the
EBITDA loss of $59,000 in the prior-year period. Its net loss
widened to $66.3 million in the fiscal second quarter of 2021,
compared to a net loss of just $6.8 million in Q2 of
2020.
Uxin Limited
Uxin Limited (NASDAQ: UXIN) is
an investment holding company that operates a used car e-commerce
platform in China. It provides a wide selection of used cars and
evaluates the car condition. The Uxin Auction application allows
businesses to source vehicles through online auctions. The company
also facilitates used car transaction services and financing
solutions offered by third-party partners to buyers.
Uxin stock is valued at a market cap of $1.92
billion and is currently trading at $5.18 per share. In the fiscal
third quarter of 2021 that ended in December, Uxin sold just 2,307
units which was significantly lower than the 28,302 units sold in
the prior-year period.
However, Uxin explained it “completed the
transformation to inventory-owning model during the three months
ended December 31, 2020, with 99% of the transaction volume sold
from the CompanyU+02019s own inventory." This allowed the company
to generate higher revenue per car sold in Q3 resulting in a 31%
decline in sales that stood at $49.5 million.
Uxin also reported a positive gross profit in
Q3, compared to a gross loss in Q2 of fiscal 2021. Its net loss
narrowed to $26.5 million which was a decline of 82% year over
year. The company is closer to achieving profitability compared to
the year ago period. While sales might decline 40% on a sequential
basis in Q4 to between 190 million yuan ($29.69 million) and 200
million yuan ($31.26 million), gross margin might rise to 5%, up
from 2.9% in the December quarter.
Ideanomics
A company that is focused on the adoption of
commercial electric vehicles as well as the development of
financial services and fintech products, Ideanomics (NASDAQ:
IDEX)
is a penny stock trading at $3.35.
The company’s Mobility division facilitates
the adoption of EVs by commercial fleet operators. This division
also offers solutions for the procurement, financing, charging, and
energy management needs for fleet operators of commercial EVs. The
Ideanomics Capital division provides fintech services that focus on
the efficiency, transparency, and profitability of the financial
services industry.
In the first quarter of 2021, Ideanomics
reported revenue of $32.7 million and gross profits of $10.8
million. It ended Q1 with a cash balance of $356 million, providing
the company with a deep pool of capital for investments in mobility
and capital business units. Analysts tracking the stock expect it
to increase sales by 383% to $129 million in 2021 and by 12.2% to
$145 million in 2022.
Comparatively, its net loss is forecast to
narrow from $0.29 per share in 2020 to $0.07 per share in
2022.
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