In this article, we will take a look at the 5 best penny stocks to buy in September. If you want to read our discussion on the current US economic situation, go directly to the 10 Best Penny Stocks to Buy in September.
5. American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT)
Number of Hedge Fund Holders: 5
American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) is an Atlanta, Georgia-based cloud communications provider.
On August 25, American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) announced that it is looking into the option of selling certain segments or the complete business. The company has Northland Capital to execute a strong buyout. American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) received a buyout offer of $9 per share in April 2021. Since then, the company has seen its top line rise following the acquisition of Kandy service.
Experts believe that American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) can find a suitable buyer in the next one to three months, and any development on this front will surely provide impetus to the share price. Experts anticipate the bid to be in the range of $1 to $4.
Citadel Investment Group raised its stake in American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) by 70% during Q2 2022.
4. Azure Power Global Limited (NYSE:AZRE)
Number of Hedge Fund Holders: 5
Azure Power Global Limited (NYSE:AZRE) is a solar company with operations in India and USA. The company is in the business of selling solar energy to federal and state government utilities at a fixed rate.
Azure Power Global Limited (NYSE:AZRE) operates roughly 45 utility-scale projects with a total output of 1,990 MW. Since its IPO in 2016, the company has been able to boost its operations at a CAGR of 43% till 2021. Moving forward, Azure Power Global Limited (NYSE:AZRE) is expected to boost operations at an average annual growth rate of 32%. The management has hinted that it would have to take on debt to fund its aggressive capital expenditure plan. The stock price of Azure Power Global Limited (NYSE:AZRE) is currently under pressure and provides investors an opportunity to buy the stock at a dip.
Renaissance Technologies raised its stake in Azure Power Global Limited (NYSE:AZRE) by 7% during Q2 2022.
3. TMC the metals company Inc. (NASDAQ:TMC)
Number of Hedge Fund Holders: 11
TMC the metals company Inc. (NASDAQ:TMC) is a Vancouver, Canada-based mining concern that went public in 2021 following the merger of DeepGreen and the Sustainable Opportunities Acquisition Corporation (NYSE:SOAC).
The company is in the business of producing metals from polymetallic rocks that are integral in electric vehicles. DeepGreen had been looking into the world’s biggest depository of battery-related metals located at the Clarion Clipperton Zone (CCZ) seafloor in the Pacific Ocean near the southwestern San Diego region. TMC the metals company Inc. (NASDAQ:TMC) intends to mine nickel and other metals from the seafloor from 2024 onwards. The company just needs to get approval from the International Seabed Authority (ISA), which is expected to be issued next year. The tension between China and the US regarding the status of Taiwan, along with the conflict between Russia and Ukraine, has accelerated efforts to secure such metals.
Of the 895 hedge funds in Insider Monkey’s database, 11 funds held a stake in TMC the metals company Inc. (NASDAQ:TMC), as of Q2 2022.
2. Geron Corporation (NASDAQ:GERN)
Number of Hedge Fund Holders: 12
Geron Corporation (NASDAQ:GERN) is a Foster City, California-based late-stage biotech company that is focused on developing and commercializing first-in-class telomerase inhibitors in patients suffering from cancer. Telomerase is an enzyme that prevents cancer cells from shortening to the point of causing cell death.
On July 28, Kalpit Patel at B. Riley resumed coverage on Geron Corporation (NASDAQ:GERN) stock with a Buy rating and a target price of $4. The analyst has based this target price on the successful approval of imetelstat, a therapeutic aimed at treating lower-risk myelodysplastic syndrome and myelofibrosis. Patel highlighted that Geron Corporation’s (NASDAQ:GERN) stock has been able to outperform the biotech index. Furthermore, the analyst expects a key catalyst to come out in January 2023 that could result in a significant share price upside. These factors have led to the inclusion of Geron Corporation (NASDAQ:GERN) in our list of the ten best penny stocks to buy in September.
RA Capital Management was the leading hedge fund investor in Geron Corporation (NASDAQ:GERN) during Q2 2022.
1. Party City Holdco Inc. (NYSE:PRTY)
Number of Hedge Fund Holders: 15
Party City Holdco Inc. (NYSE:PRTY) is a Rockaway, New Jersey-based chain store operator offering party supplies and costumes.
Party City Holdco Inc. (NYSE:PRTY) has the chance to become a quality business and offer healthy returns to shareholders. The stock has been highlighted as a near-term trade that can offer a potential upside of 50%. Party City Holdco Inc. (NYSE:PRTY) is not only present on the retail front but has a complete wholesale division related to party supplies and costumes. The second half of the year is always considered festive in the US, with Halloween coming on October 31. Observers anticipate the business to go through an overhaul and reach a fair value of $30 in the long term.
As of Q2 2022, CAS Investment Partners was the biggest shareholder in Party City Holdco Inc. (NYSE:PRTY).
You can also take a peek at the Best Value Stocks to Buy for the Next Decade and Best and Reliable High Dividend REITs to Buy Now.
