5 Best Penny Stocks to Buy Now

2. Ring Energy, Inc. (NYSE:REI)

Number of Hedge Fund Holders: 18

Ring Energy, Inc. (NYSE:REI) is a Midland, Texas-based oil and gas E&P company with assets situated across New Mexico and Texas in the Permian Basin.

On August 1, John White at Roth Capital gave Ring Energy, Inc. (NYSE:REI) stock a target price of $7.50. The analyst has taken a cautious approach following the company’s recent acquisition of privately-held Stronghold Energy for $465 million. Experts think the transaction will result in a higher number of producing wells in the portfolio of Ring Energy, Inc. (NYSE:REI). These wellbores will be vertical as opposed to horizontal wellbores for its legacy assets. As a result of this acquisition, the analyst anticipates Ring Energy, Inc. (NYSE:REI) to generate healthy free cash flows as crude oil prices continue to maintain the current momentum.

Renaissance Technologies raised its stake in Ring Energy, Inc. (NYSE:REI) by 778% during Q2 2022.