Penny stocks easily make up one of the most volatile parts of the stock market. However, if you know how to navigate the ups and downs correctly, it can be the most profitable part of the market also.
And when the insiders show serious interest in a penny stock, I’ve learned that it’s time to become interested as well.
That’s why I’m focused on this company now…
Firstly, penny stocks don’t have a generally accepted definition. Instead, they are often grouped in together as “cheap stocks,” ranging from less than a dollar up to $20.
At The Midas Legacy, we don’t go above the $10 mark when defining a stock as a penny stock.
And the penny stock I have taken notice of is sitting right under that price level…
Unity Bancorp Inc. (UNTY) is currently priced right around the $9.25 mark at the time of writing. And this stock has just experienced some serious insider buying!
There have been purchases by 7 insiders of UNTY since the beginning of the month to be exact. And those buys total nearly 225,000 shares valued at approximately $1.87 million!
So what do we know about UNTY?
UNTY operates as a bank holding company for Unity Bank that provides financial services to retail, corporate, and small business customers. This financial-sector company recently just completed a rights offering that was oversubscribed, and CEO James Hughes said the proceeds will fund expansion plans.
Hughes and the six other insiders apparently bought shares as part of this rights offering. On the face of it all, it appears to me that the UNTY insiders are quite confident in the “expansion plans” that Hughes spoke about.
I see UNTY as a very strong stock going forward, but the trick is to know WHEN to enter a trade. If you would like to learn how to tell when to buy and sell stocks at the right time, check out our Stock Code Breaker course.
