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: Richtech Robotics Inc. (NASDAQ: RR)
Today’s penny stock pick is the AI-driven service robots company, Richtech Robotics Inc. (NASDAQ: RR).
Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry in the United States. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as Matradee, a server assistant robots; Medbot, designed for hospital deliveries; Titan for heavy duty payloads in central distribution facilities and general transport duties; and Skylark, a service robots customized for hotel and room service applications.
The company provides DUST-E, a commercial cleaning robots; ADAM and Scorpion, a food and beverage automation robots; and operates the Clouffee & Tea self-owned restaurant brand that offers coffee and tea products. In addition, it offers installation, shipping, maintenance, and warranty services. The company markets its products through digital marketing, sales outreach, industry exhibitions, client referrals, online inquiries, and a network of distribution channels.
It serves restaurants, hotels, casinos, senior living facilities, factories, and retail centers, as well as hospitals, resorts, factories, schools, stadiums, movie theaters, and others. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022.
Website: https://www.richtechrobotics.com/
Latest 10-K report: https://ir.richtechrobotics.com/static-files/94d5bc40-5eca-4585-bcdb-a190624cf427
Analyst Consensus: As per TipRanks Analytics, based on 1 Wall Street analyst offering 12-month price targets for RR in the last 3 months, the stock has an average price target of $6.00, which is nearly 42% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- The company announced collaboration with NVIDIA on October 28, 2025, to advance “practical, production-ready physical AI,” enhancing robot capabilities like autonomous decision-making. Additional integrations, such as with NomadGo for Inventory AI in the “Dex” dual-arm robot, expand into smart logistics.
- RR has multi-year deals with global retailers, including Walmart via Ghost Kitchens America, for robot deployments in stores.
- The company has the potential for international growth via a China joint venture with a $4M agreement and a Beijing R&D center focused on AI models.
- The company has a broad lineup including ADAM (barista), Scorpion (bartender), Medbot (healthcare), and others, addressing a $230B service automation market.
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out a symmetrical triangle pattern, which is marked as purple color lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.
RR – 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 200-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 color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week SMA, indicating that the bulls are gaining control.
RR – 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 RR is above the price of $4.35.
Target Prices: Our first target is $5.90. If it closes above that level, the second target price is $7.00.
Stop Loss: To limit risk, place a stop loss at $3.50. Note that the stop loss is on a closing basis.
Our target potential upside is 36% to 61%.
For a risk of $0.85, our first target reward is $1.55, and the second target reward is $2.65. 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.
RR – Consolidated Statements of Operations
- The company has ongoing legal proceedings. On December 13, 2024, the Company received a Notice of Breach from AC Sunshine Securities LLC (“ACSS”), pursuant to which ACSS alleges that the Company breached an exclusivity provision in that certain Follow-On Offering Engagement Letter, by and between the Company and ACSS, and ACSS is seeking payment of fees and expenses.
- Corporate Insiders placed Informative Sells of Shares Worth $812.0K in the Last 3 Months.
Insiders | Source: TipRanks.com
- On October 28, 2025, a report by Capybara Research accused the company of fraud, illegal schemes, and questioned stock surges, leading to scrutiny.
- The company’s November 2025 SEC filing increased authorized Class B shares from 200M to 1B and amended the stock option plan. This may cause shareholder dilution and resurfacing.
- Despite being a loss-making company, the executives are being paid significant compensation.
RR – 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.
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