1. Ardagh Metal Packaging S.A. (NYSE:AMBP)
Number of Hedge Funds: 28 (2024Q2)
Share Price as of the Close of September 25: $3.70
One of the top 5 penny stocks to buy now is Ardagh Metal Packaging S.A. (NYSE:AMBP). Ardagh Metal Packaging S.A. (NYSE:AMBP) is a leading global supplier of consumer metal beverage cans in Europe, the United States, and Brazil. It is an operating business of Ardagh Group and operates 23 metal beverage can production facilities in 9 countries and employs over 6,000 people. AMP is known for its outstanding quality and customer service.
Recently featured on our list of best US stocks to buy under $5, the company is known to drive value through both organic and inorganic growth. Delivering a successive outperformance versus their guidance, the company has reported a revenue of $1.25 billion, a marginal increase compared to the same quarter of the prior year. Global beverage shipments increased 3% due to a 5% growth in Europe, 1% growth in America, and 3% growth in North America. Moreover, the company has increased its full-year adjusted EBITDA guidance to a range of $640 million to $660 million, implying stronger confidence in profitability for 2024 amidst a challenging macroeconomic backdrop.
Moving on to the balance sheet, Ardagh Metal Packaging S.A. (NYSE:AMBP) ended the quarter with a liquidity position of $405 million, rising from $329 million at the end of the previous quarter. Owing to a stronger focus on cash management, the company was able to have adjusted operating and free cash flow ahead of expectations. Moreover, growth capex is to reduce to approximately $100 million in 2024 – in line with prior guidance, along with a further reduction anticipated in 2025.
Ardagh Metal Packaging S.A. (NYSE:AMBP) has also announced a quarterly dividend of $0.10 per share to be paid in September, in line with previous guidance. Insider Monkey database reveals that at the end of the second quarter, 29 hedge funds held long positions in the company, an increase from 28 during the last quarter.
Overall, Ardagh Metal Packaging S.A. (NYSE:AMBP) ranks first among the best dividend penny stocks to buy now. While we acknowledge the potential of AMBP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMBP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published on Insider Monkey.
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