This article presents an overview of the 5 Best Penny Stocks To Buy For 2024. To see more such stocks, click 16 Best Penny Stocks To Buy For 2024.
5. Sabre Corp (NASDAQ:SABR)
Number of Hedge Fund Investors: 28
Sabre Corp (NASDAQ:SABR) shares have lost about 36% over the past one year. Yet it is one of the most popular penny stocks among the 910 hedge funds tracked by Insider Monkey since 28 funds had stakes in Sabre Corp (NASDAQ:SABR). The biggest stake in Sabre Corp (NASDAQ:SABR) belongs to Terry Smith’s Fundsmith LLP which owns an $101 million stake in Sabre Corp (NASDAQ:SABR).
4. Clear Channel Outdoor Holdings, Inc (NYSE:CCO)
Number of Hedge Fund Investors: 31
Advertising company Clear Channel Outdoor Holdings, Inc (NYSE:CCO) shares have gained about 60% year to date. The Clear Channel Outdoor Holdings, Inc (NYSE:CCO) stock recently jumped after billionaire Arturo Moreno reported a 6.8% stake in the out-of-home advertising company.
As of the end of the third quarter of 2023, 31 hedge funds had stakes in Clear Channel Outdoor Holdings, Inc (NYSE:CCO).
3. Vimeo, Inc (NASDAQ:VMEO)
Number of Hedge Fund Investors: 31
Video platform company Vimeo, Inc (NASDAQ:VMEO) shares recently surged after the Vimeo, Inc’s (NASDAQ:VMEO) Q3 results impressed the Street. Vimeo, Inc’s (NASDAQ:VMEO) revenue came in at $106.3 million, surpassing estimates of $101.2 million.
Jefferies reiterated a Buy rating on the stock after the results.
Longleaf Partners Small-Cap Fund made the following comment about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2023 investor letter:
“We exited Vimeo, Inc. (NASDAQ:VMEO) and long-term position Lumen in the quarter, both of which were disappointing investments that resulted in a permanent capital loss in the portfolio. At Vimeo we initially misjudged how much of a COVID beneficiary the business had been, and our sum of the parts valuation proved to be too generous for some of the underlying assets that were less differentiated than we originally believed.”
2. Dish Network Corporation (NASDAQ:DISH)
Number of Hedge Fund Investors: 33
Dish Network Corporation (NASDAQ:DISH) posted an extremely bad third quarter in November after which the stock plummeted. Net pay-TV subscribers decreased by about 64,000 in the third quarter, compared to a net increase of about 30,000 in the year-ago quarter.
A total of 33 hedge funds tracked by Insider Monkey had stakes in Dish Network Corporation (NASDAQ:DISH). The biggest stakeholder of Dish Network Corporation (NASDAQ:DISH) was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $54 million stake in Dish Network Corporation (NASDAQ:DISH).
ClearBridge Large Cap Value Strategy made the following comment about DISH Network Corporation (NASDAQ:DISH) in its first quarter 2023 investor letter:
“DISH Network Corporation (NASDAQ:DISH) was lower for more idiosyncratic reasons. The pay-TV provider, with unique potential to become a viable fourth wireless carrier, continues to face challenges executing its wireless buildout in a higher rate environment where a leveraged balance sheet is a liability. We believe there is still value to be captured for Dish, but it is clearly taking longer to realize, and we are monitoring the stock closely.”
1. Farfetch Ltd. (NYSE:FTCH)
Number of Hedge Fund Investors: 42
Out of the 910 hedge funds in Insider Monkey’s database, 42 hedge funds had stakes in Farfetch Ltd. (NYSE:FTCH). Last month, Citi analyst Monique Pollard upped her rating for Farfetch Ltd. (NYSE:FTCH) stock to Neutral from Sell.
On the other hand, BTIG cut Farfetch (FTCH) to Neutral from Buy and said the stock has become “almost unanalyzable.”
Patient Capital Management made the following comment about Farfetch Limited (NYSE:FTCH) in its Q3 2023 investor letter:
“Farfetch Limited (NYSE:FTCH) was exited in the quarter following continued disappointment in cash flow generation combined with their ever -expanding debt balance. From this point, we see serious balance sheet risk for the first time, causing us to question if the company will be able to achieve their long-term plan. We took the opportunity to realize tax losses and will continue to re-evaluate the name. More details on FTCH below.
Farfetch Ltd (FTCH) was our largest detractor in the quarter as the company massively disappointed expectations, while increasing their debt load. The lack of results and dramatic change in the risk profile over the last year forced us to reconsider the viability of our long-term thesis. With the additional $600M in term loan debt drawn down over the last year and the constant delays in true free cash flow generation (operating cash flow (operating cash flow (OCF)-capital expenditure (CAPEX)) the risk profile of the company has drastically changed from when we first owned it. From a strategic standpoint, the company has made great progress signing new deals, bringing on new partners and proving the value of their offering but their operational performance and financial discipline has sorely disappointed. While the entry of Tim Stone as CFO in September will certainly help the company, we don’t have conviction it will be enough. Debt and interest expense ($100M/annually) have exploded. Limited cash on hand ($753M by year-end), continued cash burn, a risk of a recession and $1B in debt maturities due in 2027, make us concerned about the company’s ability to invest behind and deliver against their long-term targets. We used the opportunity to take tax losses while continuing to re-evaluate the situation.”
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