5 Best One Dollar Stocks to Buy According To Hedge Funds

In this article, we discuss 5 best one dollar stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 12 Best One Dollar Stocks to Buy According To Hedge Funds. 

5. MoneyLion Inc. (NYSE:ML)

Number of Hedge Fund Holders: 16

Share Price as of January 26: $0.8235

MoneyLion Inc. (NYSE:ML) is a New York-based company that provides a digital financial platform that offers access to banking, borrowing, and investing solutions for customers. On December 8, MoneyLion Inc. (NYSE:ML) said that it expects medium term adjusted revenue CAGR of 35%-50% and adjusted gross profit margin 55%-65%, with 20%-30% adjusted EBITDA positive margins.

On June 27, Loop Capital analyst Hal Goetsch initiated coverage of MoneyLion Inc. (NYSE:ML) with a Buy rating and a $5 price target. He believes that the purchases of Malka Entertainment and Even Financial have transformed MoneyLion Inc. (NYSE:ML) into a leading embedded finance marketplace. The analyst also stated that MoneyLion Inc. (NYSE:ML) has a high growth potential and manages customer acquisition costs well.

According to Insider Monkey’s third quarter database, 16 hedge funds were long MoneyLion Inc. (NYSE:ML), compared to 15 funds in the prior quarter. It is one of the best one dollar stocks to invest in according to hedge funds. 

4. Offerpad Solutions Inc. (NYSE:OPAD)

Number of Hedge Fund Holders: 16

Share Price as of January 26: $0.6878

Offerpad Solutions Inc. (NYSE:OPAD) is an Arizona-based company engaged in purchasing, selling, renting, and renovating properties in the United States. It operates iBuying, a real estate solutions platform for on-demand customers. Offerpad Solutions Inc. (NYSE:OPAD) is one of the best one dollar stocks to buy according to smart investors. 

On December 13, Keefe Bruyette analyst Ryan Tomasello downgraded Offerpad Solutions Inc. (NYSE:OPAD) to Underperform from Market Perform with a price target of 40c, down from 60c. The analyst expects real estate technology and services stocks to remain volatile in 2023 “as investors continue to ascribe a high risk premium to the group.”

According to Insider Monkey’s Q3 data, 16 hedge funds were bullish on Offerpad Solutions Inc. (NYSE:OPAD), compared to 18 funds in the preceding quarter. Joshua Nash’s Ulysses Management is the leading position holder in the company, with nearly 3 million shares worth $3.50 million. 

3. Heliogen, Inc. (NYSE:HLGN)

Number of Hedge Fund Holders: 16

Share Price as of January 26: $0.5954

Heliogen, Inc. (NYSE:HLGN) is a California-based renewable energy technology company that develops artificial intelligence-focused solar power plants. Citi analyst Scott Gruber on November 2 maintained a Neutral rating on Heliogen, Inc. (NYSE:HLGN) and lowered the firm’s price target on the shares to $2 from $4.25 ahead of the Q3 results. 

According to Insider Monkey’s data, 16 hedge funds were bullish on Heliogen, Inc. (NYSE:HLGN) at the end of the third quarter of 2022, with combined stakes worth $8.6 million. It is one of the best penny stocks to buy according to hedge funds.

2. Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE)

Number of Hedge Fund Holders: 19

Share Price as of January 26: $0.8530

Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) was incorporated in 2014 and is headquartered in Gardena, California. The company designs, develops, manufactures, and distributes electric vehicles and related products in the United States and internationally. On January 23, shares of Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) climbed 50.64%, indicating the second-largest one-day move for the stock in the past year. The notable gain stood out amid a larger rally for EV stocks.

According to Insider Monkey’s third quarter database, 19 hedge funds were long Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE), compared to 28 in the prior quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with over 3 million shares worth $2 million.

1. Cazoo Group Ltd (NYSE:CZOO)

Number of Hedge Fund Holders: 27

Share Price as of January 26: $0.2059

Cazoo Group Ltd (NYSE:CZOO) is an online car retailer based in London, enabling individuals to buy, finance, and subscribe to a vehicle online and have it delivered or picked up. Cazoo Group Ltd (NYSE:CZOO)’s goals for 2023 include 40,000-50,000 units being sold at retail locations in the United Kingdom. It is also anticipated that sales at retail locations will increase during the FY24 and in subsequent years. Cazoo Group Ltd (NYSE:CZOO) is one of the best one dollar stocks to invest in according to hedge funds. 

On August 10, Berenberg analyst Saim Saeed double upgraded Cazoo Group Ltd (NYSE:CZOO) to Buy from Sell with a price target of $2.33, up from 49c. He noted that after the company reported its first half results, management announced a review of its European operations, which is expected to lead to a full exit. The analyst believes that this will help the company to better focus on its UK business, eliminate funding gaps, and ultimately create more value for shareholders. He believes that the stock currently does not reflect this change and sees this as an important positive development that is happening sooner than anticipated.

According to Insider Monkey’s data, 27 hedge funds were long Cazoo Group Ltd (NYSE:CZOO) at the end of Q3 2022, compared to 29 funds in the prior quarter. Bruce Emery’s Greenvale Capital is the largest position holder in the company, with 46.8 million shares worth $21.5 million. 

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