10 Best Bank Penny Stocks to Buy According to Hedge Funds

7. Banco Santander (Brasil) S.A. (NYSE:BSBR)

Share Price as of the close of January 3: $3.82

Number of Hedge Fund Holders: 7

Banco Santander (Brasil) S.A. (NYSE:BSBR) provides banking products and services to individuals and businesses in Brazil and internationally. It operates through two segments. The retail segment caters to the financial needs of individuals and small and medium-sized enterprises, while the wholesale segment is focused on large corporations and capital markets.

According to Insider Monkey’s database for Q3 2024, 7 hedge funds held a stake in Banco Santander (Brasil) S.A. (NYSE:BSBR), making it one of the best bank penny stocks to buy according to hedge funds. As of September 30, 2024, Marshall Wace LLP is the largest investor in BSBR, with holdings of over $2.9 million.

Several institutional investors have recently added to their stake in the stock. This includes Point72 Asset Management, which lifted its position by 44% during the third quarter of 2024, after buying an additional 54,600 shares. The hedge fund now owns 179,500 shares valued at over $944,000, making it the fifth largest investor in the company.

The company is also eying further expansion in the country. According to a report in Bloomberg, Banco Santander (Brasil) S.A. (NYSE:BSBR) is among the firms that are currently in negotiations to acquire Julius Baer Group Ltd.’s Brazil unit. People familiar with the matter have said that Julius Baer is likely to agree to a joint venture with one of the banks, instead of a total sale, with the expectation of reaching a deal as early as January.

JP Morgan recently upgraded Banco Santander (Brasil) S.A. (NYSE:BSBR)’s rating from Hold to Buy, reflecting bullish sentiment. The analyst also anticipates a 49% uptick in its share price.