We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.
Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.
Penny Stock of the Day: iBio, Inc. (NASDAQ: IBIO)
Today’s penny stock pick is the preclinical stage biotechnology company, iBio, Inc. (NASDAQ: IBIO).
iBio, Inc. engages in the development of artificial intelligence (AI) antibodies solutions for cardiometabolic and obesity space. The company’s technology platforms include EngageTx that provides improved CD3 T-cell engager antibody panel; ShieldTx, an antibody masking technology that enables the creation of conditionally activated antibodies; StableHu, an AI antibody-optimizing technology; and AI epitope steering technology that guides antibodies against the desired regions of the target protein.
Website: https://ibioinc.com/
Latest 10-K report: https://ir.ibioinc.com/sec-filings/content/0001558370-25-011888/0001558370-25-011888.pdf
Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analysts offering 12-month price targets for IBIO in the last 3 months, the stock has an average price target of $2.87, which is nearly 107% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- The Obesity drug market is currently booming, especially since the GLP-1 (glucagon-like peptide-1) revolution, which include agonists like semaglutide (Ozempic, Wegovy) and tirzepatide (Mounjaro, Zepbound).
- Oppenheimer and Leerink have initiated coverage for iBio with optimistic price targets, highlighting the potential of IBIO-610 in the obesity market.
- iBio’s recent $50 million public offering is expected to fund its operations through 2026, supporting its innovative drug development pipeline.
- iBio has been active in expanding its collaboration with AstralBio to develop next-generation therapies for cardiometabolic diseases and obesity. The collaboration has produced multiple preclinical antibody candidates showing promising results, including fat-selective weight loss.
- The company is expected to present its new preclinical obesity antibody data, which could be a potential catalyst for IBIO-610.
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Breakout From Consolidation Area: The daily chart shows that the stock had been consolidating within a price range for the past few days. This area is marked as a purple color rectangle. The stock has now broken out from this consolidation area with high volume and is currently trading above it. The breakout level of this consolidation area typically acts as a good support level.
IBIO – Daily Chart
#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.
#3 Price above MA: The stock is currently above its 50-day SMA, indicating that the bulls have currently gained control.
#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink dotted line. This looks like a good area for the stock to move higher.
IBIO – Weekly Chart
#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for IBIO is above the price of $1.40.
Target Prices: Our first target is $3.00. If it closes above that level, the second target price is $4.20.
Stop Loss: To limit risk, place a stop loss at $0.50. Note that the stop loss is on a closing basis.
Our target potential upside is 114% to 200%.
For a risk of $0.90, our first target reward is $1.60, and the second target reward is $2.80. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Potential Risks / Red Flags:
- The company has a history of net losses. As of June 30, 2025, the company had an accumulated deficit of approximately $332.2 million.
IBIO – Consolidated Statements of Operations
- There is high competition in obesity space from big pharma.
- The ongoing dilution from equity raises could pressure share price. Negative EPS (-$1.75 TTM) and minimal revenue signal cash burn risks.
- Stocks like iBio are subject to economic sensitivity. If rates or recession fears rise, speculative biotechs usually get impacted negatively.
- iBio’s advanced product candidates are dependent on patents, know-how and proprietary technology, some of which is owned and some of which is licensed from others. Termination of any of these or future licenses could result in the loss of significant rights, which could adversely affect the company’s business, results of operations, and financial condition.
- Despite being a loss-making company, the executives are being paid significant compensation.
IBIO – Executive Compensation
As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!
Happy Trading!
Trades of the Day Research Team
READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.
Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.
The Guy Who Beat Buffett Shocks the World Again… [sponsor]The New York Times called him "an icon among growth stock investors." The Wall Street Journal said "Most money managers can only dream of having the same success" he's had. His investment fund produced a 4,000% return over a 15-year span, outperforming even the great Warren Buffett. His name is Louis Navellier. And he's just issued an astonishing financial prediction. Click here to see it.
Source: Trades of the Day
