In this article, we will take a look at the 5 best value penny stocks to buy. To see more such companies, go directly to 10 Best Value Penny Stocks To Buy.
5. W&T Offshore, Inc. (NYSE:WTI)
Number of Hedge Fund Holders: 18
Texas-based energy company W&T Offshore, Inc. (NYSE:WTI) ranks 5th in our list of the best value penny stocks to buy according to hedge funds. W&T Offshore, Inc. (NYSE:WTI)’s PE ratio as of August 22 stands at 4.94.
As of the end of the second quarter of 2023, 18 hedge funds had stakes in W&T Offshore, Inc. (NYSE:WTI). The biggest stakeholder of W&T Offshore, Inc. (NYSE:WTI) was Joe Huber’s Huber Capital Management with an $8.6 million stake in the company.
W&T Offshore, Inc. (NYSE:WTI)’s management talked about their expectations for the third quarter in a recent earnings call. W&T Offshore, Inc. (NYSE:WTI)’s CEO Tracy Krohn said:
“For the third quarter, our guidance for lease operating expense is expected to be lower, so between $60 million and $67 million. We also continue to control our G&A costs. In the second quarter, cash G&A costs were $15.3 million, down 14% and $18 million in Q1 2023. For the third quarter, we are expecting cash G&A to increase modestly between $15.4 million and $17.3 million. We’ll continue to manage controllable costs to help maximize our margins. So turning to our balance sheet. During 2023, we’ve reduced total debt by almost $300 million from year end 2022. At the end of the second quarter, we had net debt of $231.9 million, which was total debt of $403.6 million, net of cash and cash equivalents of $171.6 million. As I mentioned previously, the large reduction in total debt was driven by issuing new 2026 senior second lien notes in January 2023 at par totaling $275 million in a private offering and using the proceeds along with a portion of our considerable cash position to retire all of our outstanding 2023 senior second lien notes.”
Kingdom Capital Advisors made the following comment about W&T Offshore, Inc. (NYSE:WTI) in its Q4 2022 investor letter:
“W&T Offshore, Inc. (NYSE:WTI) was our favorite trading vehicle, taking advantage of its volatile nature and gunslinging risk management department, to ride multiple >100% moves in the stock during 2022. WTI is a Gulf of Mexico E&P with a colorful CEO, no capital return plan, a valuable pile of reserves, and a slug of calls on the price of natural gas. We found this to be an exciting trade to express our belief in energy stocks, and a dangerous place to stay after sentiment peaks.”
4. Destination XL Group, Inc. (NASDAQ:DXLG)
Number of Hedge Fund Holders: 18
Destination XL Group, Inc. (NASDAQ:DXLG) sells clothes and shoes for big and tall men. In May Destination XL Group, Inc. (NASDAQ:DXLG) posted Q1 results. Adjusted EPS of Destination XL Group, Inc. (NASDAQ:DXLG) in the quarter came in at $0.11 missing estimates by $0.01. Revenue in the quarter fell 1.8% year over year to $125.44 million, surpassing estimates by $1.12 million. Comparable sales in the first quarter jumped 0.6% on a YoY basis.
As of the end of the second quarter of 223, 18 hedge funds out of the 910 funds in Insider Monkey’s database reported owning stakes in Destination XL Group, Inc. (NASDAQ:DXLG). The biggest stakeholder of Destination XL Group, Inc. (NASDAQ:DXLG) was Chuck Royce’s Royce & Associates which owns a $6.41 million stake in the company.
3. Assertio Holdings, Inc. (NASDAQ:ASRT)
Number of Hedge Fund Holders: 20
Specialty pharma company Assertio Holdings, Inc. (NASDAQ:ASRT) ranks 3rd in our list of the best value penny stocks to buy according to hedge funds. Earlier in August Assertio Holdings, Inc. (NASDAQ:ASRT) posted Q2 results. Adjusted EPS in the period came in at $0.19, missing estimates by $0.03. Revenue in the quarter jumped 16.7% year over year to $40.99 million, surpassing estimates by $1.16 million.
Out of the 910 hedge funds in Insider Monkey’s database, 20 hedge funds had stakes in Assertio Holdings, Inc. (NASDAQ:ASRT) as of the end of June.
2. Origin Materials, Inc. (NASDAQ:ORGN)
Number of Hedge Fund Holders: 21
Materials company Origin Materials, Inc. (NASDAQ:ORGN) ranks 2nd in our list of the best value penny stocks to buy according to hedge funds. A total of 21 hedge funds in Insider Monkey’s database of hedge funds held stakes in Origin Materials, Inc. (NASDAQ:ORGN) as of the end of the second quarter of 2023. Origin Materials, Inc. (NASDAQ:ORGN) recently plunged after the company announced to extend the timeline of its key project amid a “higher-cost capital project environment.”
Origin Materials, Inc. (NASDAQ:ORGN) has lost about 76% in value over the past 12 months. Earlier in August Origin Materials, Inc. (NASDAQ:ORGN) posted Q2 results. GAAP EPS in the quarter came in at -$0.05 beating estimates by $0.07.
1. Community Health Systems, Inc. (NYSE:CYH)
Number of Hedge Fund Holders: 22
Hospital healthcare services company Community Health Systems, Inc. (NYSE:CYH) is a Fortune 500 company. Community Health Systems, Inc. (NYSE:CYH) has gained about 3% over the past one year. This undervalued penny stock has a PE ratio of about 1.56.
A total of 22 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in Community Health Systems, Inc. (NYSE:CYH). The biggest stakeholder of Community Health Systems, Inc. (NYSE:CYH) during this period was Kamran Moghtaderi’s Eversept Partners which owns a $32 million stake in the company.
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