In this article, we will take a look at the 5 most undervalued penny stocks to invest in. To see more such companies, go directly to 16 Most Undervalued Penny Stocks To Invest In.
5. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Number of Hedge Fund Holders: 19
Broadcasting and media company Sirius XM Holdings Inc. (NASDAQ:SIRI) ranks 4th in our list of the most undervalued penny stocks to buy according to hedge funds. A total of 19 hedge funds in Insider Monkey’s database of 910 funds were long Sirius XM Holdings Inc. (NASDAQ:SIRI). The biggest stakeholder of Sirius XM Holdings Inc. (NASDAQ:SIRI) was Dmitry Balyasny’s Balyasny Asset Management which owns a $19.5 million stake in the company.
Deutsche Bank upgraded Sirius XM Holdings Inc. (NASDAQ:SIRI) to Hold as it said 2023 continues to be a challenging year for the company. However, the firm is hopeful that the second half of the year could be better than the first, driven by the company’s re-launch of its streaming product, and recent price increases, among other factors.
4. Chimerix, Inc. (NASDAQ:CMRX)
Number of Hedge Fund Holders: 19
Biopharmaceutical company Chimerix, Inc. (NASDAQ:CMRX) ranks 4th in our list of the most undervalued penny stocks to invest in. During the second quarter, Chimerix, Inc. (NASDAQ:CMRX)’s GAAP EPS came in at -$0.21 beating estimates by $0.03. Revenue fell by a whopping 93% in the quarter on a YoY basis.
As of the end of the second quarter of 2023, 19 hedge funds tracked by Insider Monkey were long Chimerix, Inc. (NASDAQ:CMRX). The biggest stakeholder of Chimerix, Inc. (NASDAQ:CMRX) was Steven Boyd’s Armistice Capital which owns a $3.8 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 undervalued penny stocks to buy according to hedge funds. As of the end of the second quarter of 2023, 20 hedge funds in Insider Monkey’s database of hedge funds were long Assertio Holdings, Inc. (NASDAQ:ASRT). The most significant stakeholder of Assertio Holdings, Inc. (NASDAQ:ASRT) was Mark Coe’s Intrinsic Edge Capital which owns a $6.5 million stake in the company.
Assertio Holdings, Inc. (NASDAQ:ASRT) recently posted Q2 results. Adjusted EPS in the quarter totaled $0.19 missing estimates by $0.03. Revenue in the period jumped 16.7% year over year to $4.099 million, surpassing estimates by $1.16 million.
2. Origin Materials, Inc. (NASDAQ:ORGN)
Number of Hedge Fund Holders: 21
Origin Materials, Inc. (NASDAQ:ORGN) is one of the most undervalued penny stocks to buy according to hedge funds. Insider Monkey’s database of 910 hedge funds shows that 21 hedge funds had stakes in Origin Materials, Inc. (NASDAQ:ORGN). Origin Materials, Inc. (NASDAQ:ORGN) recently plunged after the company extended the timeline of one of its projects and also said its costs would rise.
1. Community Health Systems, Inc. (NYSE:CYH)
Number of Hedge Fund Holders: 22
Community Health Systems, Inc. (NYSE:CYH) is a notable stock that is undervalued based on its PE ratio and is popular among smart money investors. As of the end of the second quarter of 2023, 22 hedge funds tracked by Insider Monkey had stakes in Community Health Systems, Inc. (NYSE:CYH). The biggest stakeholder of Community Health Systems, Inc. (NYSE:CYH) was Kamran Moghtaderi’s Eversept Partners which owns a $32 million stake in the company.
Earlier this month, Community Health Systems, Inc. (NYSE:CYH) posted Q2 results. Adjusted EPS in the quarter came in at -$0.22 beating estimates by $0.04. Revenue in the quarter jumped 6.5% year over year to $3.12 billion, surpassing estimates by $80 million.
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