10 Best Bank Penny Stocks to Buy According to Hedge Funds

4. Mizuho Financial Group, Inc. (NYSE:MFG)

Share Price as of the close of January 3: $4.95

Number of Hedge Fund Holders: 11

Mizuho Financial Group, Inc. (NYSE:MFG) is a bank holding company headquartered in Tokyo, Japan. It operates in five segments: Retail and Business Banking, Corporate and Investment Banking, Global Corporate and Investment Banking, Global Markets, and Asset Management. MFG is the parent company of Mizuho Bank, one of the largest financial services companies in Japan.

On November 13, MFG announced that it would buy a 15% stake in Rakuten Card, a widely used credit card in Japan for $1.06 billion. The move has further bolstered the group’s strategic alliance with Rakuten Group. In 2023, the two companies agreed to raise Mizuho’s stake in Rakuten Securities to nearly half as the latter’s parent company struggled financially.

In October of last year, Mizuho Financial Group, Inc. (NYSE:MFG) acquired a minority stake (less than 5%) in Golub Capital, a US private credit firm. As part of the transaction, it will promote Golub’s products to high-net-worth investors in Japan. This also marked MFG’s first stake in a US private credit asset manager, enabling it to capitalize on the thriving $1.7 trillion industry.

Mizuho Financial Group, Inc. (NYSE:MFG)’s financial performance remains robust. On November 15, the company declared results for FY24 H1, reporting a significant increase in net business profits, driven by consistent banking and non-interest income growth. It also raised the annual dividend estimate for fiscal year 2024 to JPY 130, representing a JPY 25 year-over-year increase.

MFG’s strategic investments, along with its solid financials and commitment to shareholder returns make it an attractive stock. According to Insider Monkey’s database for Q3 2024, 11 hedge funds held a stake in the company, making it one of the best bank penny stocks to buy according to hedge funds.