In this article, we discuss the 5 best penny stocks to buy according to hedge funds. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Penny Stocks To Buy According To Hedge Funds.
5. Sesen Bio, Inc. (NASDAQ:SESN)
Number of Hedge Fund Holders: 10
Sesen Bio, Inc. (NASDAQ:SESN) has had a hot and cold year so far. The company, placed fifth on our list of 11 best penny stocks to buy according to hedge funds, saw share price fall heavily in August after the drug body in the US failed to approve Vicineum, a cancer drug therapy, developed by the firm. Following the unexpected setback, the company revealed a restructuring plan in September, reducing workforce and implementing cost-saving measures. The stock jumped more than 26% as a result.
Sesen Bio, Inc. (NASDAQ:SESN) reported cash and cash equivalents of more than $150 million at the end of the second quarter of 2021. The stock has now become a favorite of retail investors on internet platform Reddit, driving high volumes.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $46 million in Sesen Bio, Inc. (NASDAQ:SESN), down from 11 in the preceding quarter worth $35 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Schonfeld Strategic Advisors is a leading shareholder in Sesen Bio, Inc. (NASDAQ:SESN) with 3.8 million shares worth more than $17 million.
4. Tellurian Inc. (NASDAQ:TELL)
Number of Hedge Fund Holders: 17
Tellurian Inc. (NASDAQ:TELL) is one of the few non-growth penny stocks in the hedge fund portfolio. The company beat market expectations on revenue in the second quarter by more than 10 million. During the period, the year-on-year quarterly revenue jumped 300%. The firm is ranked fourth on our list of 11 best penny stocks to buy according to hedge funds. There are several growth catalysts for the stock in the long term, including two recent LNG agreements with Shell and Total Energies.
Tellurian Inc. (NASDAQ:TELL) stock has returned more than 295% to investors in the past twelve months. B Riley analyst Liam Burke has a Buy rating on the stock with a price target of $8. Burke expects the firm to benefit from the growth of the LNG market in the coming months.
At the end of the second quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $103 million in Tellurian Inc. (NASDAQ:TELL), up from 12 in the previous quarter worth $28 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Tellurian Inc. (NASDAQ:TELL) with 7.2 million shares worth more than $33 million.
3. Amneal Pharmaceuticals, Inc. (NYSE:AMRX)
Number of Hedge Fund Holders: 17
Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is placed third on our list of 11 best penny stocks to buy according to hedge funds. In late August, the share price of the company jumped more than 18% after it announced positive results from a late-stage trial testing of IPX-203, a drug for patients with Parkinson’s disease. In addition to a strong drug pipeline, the firm also boasts solid financials. The company reported a 15% year-on-year increase in revenue in the second quarter earnings, beating estimates by close to $12 million.
In July, the FDA granted Amneal Pharmaceuticals, Inc. (NYSE:AMRX) ANDA approval for a generic of TobraDex, a drug for patients with steroid-responsive inflammatory ocular conditions. The share price of the firm has jumped 30% in the last three months.
At the end of the second quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $53 million in Amneal Pharmaceuticals, Inc. (NYSE:AMRX), up from 15 in the previous quarter worth $77 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eversept Partners is a leading shareholder in Amneal Pharmaceuticals, Inc. (NYSE:AMRX) with 5.6 million shares worth more than $28 million.
2. Verastem, Inc. (NASDAQ:VSTM)
Number of Hedge Fund Holders: 21
Verastem, Inc. (NASDAQ:VSTM) is another biotech penny stock that hedge funds love. It is ranked second on our list of 11 best penny stocks to buy according to hedge funds. The firm recently announced that it would be partnering with Amgen to evaluate the safety of a new drug for cancer patients. The share of the firm jumped more than 22% after the announcement. In the second quarter, the company beat market expectations on revenue by close to $0.5 million. Alliance Global Partners has a Buy rating on the stock with a $6 price target.
Investment advisory BTIG also has a Buy rating on Verastem, Inc. (NASDAQ:VSTM) stock with a $8 price target. Analyst Robert Hazlett is covering the firm. It has a market cap of close to $500 million.
At the end of the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $241 million in Verastem, Inc. (NASDAQ:VSTM), up from 12 in the preceding quarter worth $129 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Baker Bros. Advisors is a leading shareholder in Verastem, Inc. (NASDAQ:VSTM) with 21 million shares worth more than $87 million.
1. Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 27
The share price of Transocean Ltd. (NYSE:RIG) has jumped more than 300% in the past year. Interest in the stock has been soaring since the firm announced that it would be cutting greenhouse gas emissions intensity by 40% from 2019 levels by the end of this decade. It is placed first on our list of 11 best penny stocks to buy according to hedge funds. The firm was also recently awarded a $225 million contract for an ultra-deepwater drillship. The first phase of the project will begin next year.
Transocean Ltd. (NYSE:RIG) has a market cap of more than $2.4 billion and posted over $3 billion in revenue last year. The firm has become a darling of retail investors on Reddit after the announcement to cut greenhouse gas emissions.
At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $313 million in Transocean Ltd. (NYSE:RIG), up from 20 in the preceding quarter worth $148 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Transocean Ltd. (NYSE:RIG) with 25 million shares worth more than $113 million.
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