5 New Penny Stocks Redditors are Buying

2. Companhia Energética de Minas Gerais (NYSE: CIG)

Number of Hedge Fund Holders: 15  

Companhia Energética de Minas Gerais (NYSE: CIG) is placed second on our list of 10 new penny stocks Redditors are buying. The firm engages in the generation and sale of energy and is headquartered in Brazil. 

On May 27, investment advisory JPMorgan upgraded Companhia Energética de Minas Gerais (NYSE: CIG) stock to Overweight from Neutral with a price target of R$16. Fernando Abdalla, an analyst at the firm, issued the ratings update. 

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Polunin Capital is a leading shareholder in Companhia Energética de Minas Gerais (NYSE: CIG) with 12 million shares worth more than $29 million. 

At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $108 million in Companhia Energética de Minas Gerais (NYSE: CIG), up from 13 in the preceding quarter worth $65 million.