10 Best NASDAQ Penny Stocks To Invest In

7. Conduent Incorporated (NASDAQ:CNDT)

Share Price as of July 12: $3.55

Number of Hedge Fund Holders: 16

Conduent Incorporated (NASDAQ:CNDT) is a New Jersey-based technology services provider that offers a range of digital solutions and business process services through Commercial, Government Services, and Transportation segments. For healthcare, Conduent offers services to manage administrative tasks, support clinical work, and oversee medical care. For transportation, the company provides solutions for easier mobility and payments and aims to reduce traffic and make travel better. The company serves both government and commercial clients in different industries including automotive, healthcare, public sector, transportation, and more.

Conduent (NASDAQ:CNDT) is actively reshaping its business strategy to boost profitability and drive future growth. The company has been making strategic moves like selling off non-core divisions and debt reduction initiatives to streamline operations and strengthen its financial position.

The company finalized the sale of its casualty claims solutions division to MedRisk in May 2024, a transaction that injected $240 million into the company’s debt repayment efforts. Earlier this year, Conduent also sold its curbside management and public safety business to Modaxo for $230 million plus debt assumption. These divestitures are part of Conduent’s broader plan to reduce debt and enhance overall financial health.

Along with these strategic sales, Conduent Incorporated (NASDAQ:CNDT) has diligently pursued its $1 billion debt reduction and share repurchase program. By the end of the first quarter, the company had already allocated around $300 million towards this initiative. Conduent Incorporated (NASDAQ:CNDT) made significant progress by making prepayments of $164 million on its Term Loan B, with an additional $95 million in April.

Additionally, the company recently completed a $132 million share buyback from affiliates of Carl Icahn, a move that aligns with its goal of reducing debt leverage ratios and returning value to shareholders. For investors, these efforts signal a proactive approach to managing financial resources and positioning the company for sustainable growth in the future.

Conduent Incorporated (NASDAQ:CNDT) was held by 16 hedge funds in the first quarter and the stakes amounted to $166.035 million. Icahn Capital LP is the largest shareholder of the company and has a position worth $129 million as of Q1. It is one of the best NASDAQ penny stocks to invest in and it has received Buy ratings from 2 Wall Street analysts. The average price target of $6.00 has an upside of 69%, as of July 12.