5 Cheap Penny Stocks to Buy According to Hedge Funds

4. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 26

P/E Ratio as of March 29: 12.70

Sirius XM Holdings Inc. (NASDAQ:SIRI) is an audio entertainment company in the United States. On March 6, the company disclosed that it trimmed the size of its workforce by 8%, which amounts to 475 employees. Sirius XM Holdings Inc. (NASDAQ:SIRI) revealed that its decision to reduce the workforce was necessary in order to maintain a sustainable profitable company. It is one of the best cheap penny stocks to watch. 

On February 22, Barton Crockett, an analyst at Rosenblatt, decreased Sirius XM Holdings Inc. (NASDAQ:SIRI)’s rating from Buy to Neutral and reduced the price target from $7.40 to $4.80. The analyst observed that new and used car sales, which significantly contribute to subscriber growth, are not performing well and Sirius XM Holdings Inc. (NASDAQ:SIRI) has predicted a minor drop in subscribers in 2023. Despite the fact that Sirius XM’s paid subscription churn rate was at an all-time low in Q4, the CEO’s statements are in line with the notion that customers, over time, will tend to move away from satellite radio and toward other streaming services, which has been a long-standing negative stance, the analyst wrote in research note. 

According to Insider Monkey’s fourth quarter database, 26 hedge funds were long Sirius XM Holdings Inc. (NASDAQ:SIRI), compared to 24 funds in the prior quarter. Stuart J. Zimmer’s Zimmer Partners is a prominent stakeholder of the company, with 3.13 million shares worth $18.30 million.