10 Best Penny Stocks to Buy in September

As the stock market runs red, investors are wary about spending copious amounts of money and making huge investments amid such macro uncertainty. On the other hand, investors with limited money but high appetite for risk also look for stocks with growth potential. This is where the demand for penny stocks skyrockets. Penny stocks, with proper growth catalysts and funding, have the potential for exponential growth. These stocks can trade higher over time, realizing significant gains for stakeholders. 

The S&P 500, Nasdaq, and Dow have all plunged from their highs, effectively concluding a multi-week rally. The stagnant market sentiment has led many investors to seek alpha elsewhere. This is why higher volatility investments like penny stocks are the go-to trades for many right now. Investors who can’t afford the likes of Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) gravitate towards penny stocks, in the hopes of significant gains. 

Retail investors have a huge influence on the stock market. They usually buy up penny stocks in droves, hoping for the companies with growth catalysts to flourish over the years. In this article, we discuss 10 best penny stocks to buy in September. 

Our Methodology 

We picked some of the best stocks priced under $5 as of September 7 for this analysis. These stocks have received positive analyst coverage recently and display growth fundamentals. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds. 

Now, let’s start our list of 10 best penny stocks to buy in September.

Photo by Mohamed Hadji on Unsplash

Best Penny Stocks to Buy in September

10. Dynatronics Corporation (NASDAQ:DYNT)

Number of Hedge Fund Holders: 2

Share Price as of September 7: $0.57

Dynatronics Corporation (NASDAQ:DYNT) is a Minnesota-based medical device company that designs and sells physical therapy, rehabilitation, orthopedics, pain management, and athletic training products in the United States. Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies and Israel Englander’s Millennium Management held stakes worth $562,000 and $7,000 in Dynatronics Corporation (NASDAQ:DYNT) at the end of Q2 2022, respectively. 

Lake Street analyst Brooks O’Neil on July 27 initiated coverage of Dynatronics Corporation (NASDAQ:DYNT) with a Buy rating and a $4 price target, categorizing it as “a solid, but unspectacular company”. However, after over 40 years in the industry, the analyst sees Dynatronics Corporation (NASDAQ:DYNT) as “a platform opportunity in the large, growing but highly fragmented rehabilitation and bracing markets”. The organic growth at Dynatronics Corporation (NASDAQ:DYNT) has exceeded market growth and internal goals for four quarters consecutively, as per the analyst. He believes the company is on a clear path to profitable growth, and encouraged investors to “brace up and buy this stock now”. 

In addition to Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Dynatronics Corporation (NASDAQ:DYNT) is one of the notable stocks to buy in order to diversify a portfolio. 

9. Clene Inc. (NASDAQ:CLNN)

Number of Hedge Fund Holders: 5

Share Price as of September 7: $2.92

Clene Inc. (NASDAQ:CLNN) is headquartered in Salt Lake City, Utah, operating as a clinical-stage pharmaceutical company, specializing in the discovery and commercialization of clean-surfaced nanotechnology therapeutics. On July 19, a panel of the European Medicines Agency (EMA) recommended authorizing orphan drug designation to Clene Inc. (NASDAQ:CLNN)’s CNM-Au8 to treat amyotrophic lateral sclerosis (ALS). If the recommendation is approved, the orphan drug status has benefits, including 10 years of market exclusivity. 

On July 18, H.C. Wainwright analyst Joseph Pantginis initiated coverage of Clene Inc. (NASDAQ:CLNN) with a Buy rating and a $16 price target. The analyst believes that Clene Inc. (NASDAQ:CLNN)’s approach presents core advantages and unique elements when compared to other therapies in the neuro space. Clene Inc. (NASDAQ:CLNN) features on our list of the best penny stocks to buy in September on the back of optimistic analyst coverage and potential growth catalysts. 

According to the second quarter database of Insider Monkey, 5 hedge funds were bullish on Clene Inc. (NASDAQ:CLNN), with collective stakes worth $1.03 million, compared to 3 funds in the earlier quarter holding stakes worth $2.11 million. Ken Griffin’s Citadel Investment Group is a notable position holder in the company, with 65,252 shares valued at $164,000. 

8. Abeona Therapeutics Inc. (NASDAQ:ABEO)

Number of Hedge Fund Holders: 8

Share Price as of September 7: $3.68

Abeona Therapeutics Inc. (NASDAQ:ABEO) is a New York-based clinical-stage biopharmaceutical company that develops gene and cell therapies for serious rare genetic diseases. On August 11, the company posted a Q2 revenue of $1 million and announced cash and cash equivalents of $26 million as of June 30, 2022. It is one of the best penny stocks to buy in September. 

Cantor Fitzgerald analyst Kristen Kluska on August 11 raised the price target on Abeona Therapeutics Inc. (NASDAQ:ABEO) to $22 from $15 as the company reduced short-term expenses, and kept an Overweight rating on the shares after Q2 earnings. The analyst observed that Abeona Therapeutics Inc. (NASDAQ:ABEO) is close to posting the topline Phase 3 data from gene-corrected cell therapy, EB-101, in recessive dystrophic epidermolysis bullosa. While this is the primary focus on the stock, in the short-term, the analyst is also anticipating more preclinical data from the ophthalmology portfolio, which could support IND meetings in the second half of 2022 and early 2023.

According to Insider Monkey’s data, Abeona Therapeutics Inc. (NASDAQ:ABEO) was part of 8 hedge fund portfolios at the end of June 2022, compared to 11 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest position holder in the company, with 8 million shares worth $1.66 million. 

7. 9 Meters Biopharma, Inc. (NASDAQ:NMTR)

Number of Hedge Fund Holders: 8

Share Price as of September 7: $0.2599

9 Meters Biopharma, Inc. (NASDAQ:NMTR) is a North Carolina-based clinical-stage biopharmaceutical company, focused on treatments for rare digestive diseases, gastrointestinal conditions, and severe disorders. As of June 30, 2022, the company’s cash and cash equivalents totaled approximately $29.5 million, compared to roughly $37.2 million as of March 31, 2022. 9 Meters Biopharma, Inc. (NASDAQ:NMTR) is one of the best penny stocks to buy in September. 

On July 18, Oppenheimer analyst Francois Brisebois assumed coverage of 9 Meters Biopharma, Inc. (NASDAQ:NMTR) with an Outperform rating and a $4 price target due to a reallocation of the firm’s analyst resources.

Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on 9 Meters Biopharma, Inc. (NASDAQ:NMTR) at the end of the second quarter of 2022, with collective stakes worth $8.26 million, compared to the same number of funds in the prior quarter with stakes worth about $19 million. Samuel Isaly’s OrbiMed Advisors is a prominent stakeholder of the company, with 8.50 million shares worth $2.2 million. 

6. Gold Resource Corporation (NYSE:GORO)

Number of Hedge Fund Holders: 10

Share Price as of September 7: $1.745 

Gold Resource Corporation (NYSE:GORO) is a Colorado-based company that engages in the exploration and production of gold and silver projects in Mexico and the United States. The company also explores and develops copper, lead, and zinc deposits. On July 28, Gold Resource Corporation (NYSE:GORO) declared a $0.01 per share quarterly dividend, in line with previous. The dividend is payable on September 30, to shareholders of record as of September 15. The company delivered a dividend yield of 2.30% on September 7. 

Alliance Global Partners analyst Jake Sekelsky on July 21 initiated coverage of Gold Resource Corporation (NYSE:GORO) with a Buy rating and a $4.25 price target. The company is an undervalued low-cost precious metals producer on its way to internal production growth, the analyst told investors. The analyst observed that Gold Resource Corporation (NYSE:GORO) has consecutively paid dividends over the last ten years, something he anticipates to continue in the future. 

According to Insider Monkey’s Q2 data, 10 hedge funds were bullish on Gold Resource Corporation (NYSE:GORO), compared to 11 funds in the last quarter. Frederick Disanto’s Ancora Advisors is a prominent position holder in the company, with 695,380 shares worth $1.13 million. 

If investors cannot afford the likes of Tesla, Inc. (NASDAQ:TSLA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), they can consider buying Gold Resource Corporation (NYSE:GORO), one of the best penny stocks, in September.

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Disclosure: None. 10 Best Penny Stocks to Buy in September is originally published on Insider Monkey.