In this article, we talk about the 5 penny stocks for long-term profits. If you wish to read about some more penny stocks, go directly to 10 Penny Stocks for Long-Term Profits.
5. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 12
Share Price (as of August 5): $4.26
Uranium Energy Corp. (NYSE:UEC) is a Texas-based company which deals in the exploration, extraction, and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. Out of all the hedge funds tracked by Insider Monkey, 12 reported ownership of positions in Uranium Energy Corp. (NYSE:UEC), as compared to 10 hedge funds a quarter earlier.
Sky high natural gas prices, climate change concerns regarding usage of coal, and unreliability of renewable resources has led Europe and the larger globe to reconsider its stance on nuclear energy, and Uranium Energy Corp. (NYSE:UEC) stands as a long-term beneficiary of these trends. As of August 5, shares of the company have risen 93.64% in the last 12 months.
On June 13, Uranium Energy Corp. (NYSE:UEC) announced that it had purchased uranium mining firm UEX Corp. (OTCQB:UEXCF) for roughly C$234M in an all-stock transaction, thereby resulting in the former boasting the largest uranium portfolio in North and South America. On June 15, Canaccord analyst Katie Lachapelle raised the firm’s price target on Uranium Energy Corp. (NYSE:UEC) to $6 from $5.50 and maintained a Speculative Buy rating on the shares. She noted the UEX transaction as positive given that long-term value can be derived from acquired assets.
4. GreenLight Biosciences Holdings (NASDAQ:GRNA)
Number of Hedge Fund Holders: 15
Share Price (as of August 5): $4.16
GreenLight Biosciences Holdings (NASDAQ:GRNA) specializes in RNA (ribonucleic acid) technology, making mRNA vaccines and therapies for humans, as well as agricultural RNA products to protect crops. Its RNA manufacturing platform uses a cell-free mechanism which enables the scalable and cost-effective production of RNA products.
A total of 15 hedge funds were bullish on GreenLight Biosciences Holdings (NASDAQ:GRNA) at the end of Q1 2022, with overall stakes worth more than $134 million. Cormorant Asset Management held a $62 million stake in GRNA at the end of March, establishing it as the firm’s largest shareholder.
GreenLight Biosciences Holdings (NASDAQ:GRNA) and Samsung Biologics, recently completed their first commercial-scale engineering run under their mRNA production partnership. GRNA is developing a Covid booster vaccine, for which the trial is expected to start this year. Under the agreement, Samsung is helping GreenLight Biosciences Holdings (NASDAQ:GRNA) establish commercial-scale manufacturing capabilities.
3. Nexgen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Holders: 15
Share Price (as of August 5): $4.22
The world’s ambition to abandon fossil fuels, and the unreliability of solar and wind power in certain locations, has led to the emergence of nuclear power as a viable energy source. This is good news for Nexgen Energy Ltd. (NYSE:NXE), which boasts a vast portfolio of uranium properties across Canada.
On May 25, Raymond James analyst Brian MacArthur kept an ‘Outperform’ rating on Nexgen Energy Ltd. (NYSE:NXE) shares, whilst retaining a favorable outlook for uranium and Nexgen. The analyst removed NXE shares from the firm’s Analyst Current Favorites List owing to the recent market volatility. In the last 12 months, Nexgen Energy Ltd. (NYSE:NXE) has posted gains of 4.96%, as compared to the 6.57% loss posted by the S&P500. In the last month alone, the company shares have registered growth of 20.51% as of August 5.
The number of hedge funds with positions in Nexgen Energy Ltd. (NYSE:NXE) at the end of the first quarter stood at 15, the same as the quarter before. With a nearly $19 million stake, Falcon Edge Capital was the biggest Q1 shareholder of the company.
2. Edgio, Inc. (NASDAQ:EGIO)
Number of Hedge Fund Holders: 16
Share Price (as of August 4): $2.76
Edgio, Inc. (NASDAQ:EGIO) provides content delivery network services, such as video delivery, edge computing, cloud security, and real-time streaming. The company was previously known as Limelight Networks, and was rebranded in June 2022 after acquiring Yahoo’s Edgecast in an all-stock deal.
With billions of content-hungry digital screens around the world, content delivery companies such as Edgio, Inc. (NASDAQ:EGIO) are poised to see outsized growth in the coming years. On June 21, Cowen analyst Michael Elias revised the firm’s price target on Edgio, Inc. (NASDAQ:EGIO) to $5.00 from $5.50 and maintained an ‘Outperform’ rating on the company shares. The analyst noted that investors do not fully appreciate the potential upside from regaining previously lost traffic share with two of EGIO’s top 20 customers, as well as the potential for long-term upside to EBITDA following the integration of Edgecast.
16 hedge funds, out of the 912 tracked by Insider Monkey, were long Edgio, Inc. (NASDAQ:EGIO) at the end of March. This shows a positive trend from the quarter before where 11 hedge funds were stakeholders in the company. Lynrock Lake held a $18 million position in Edgio, Inc. (NASDAQ:EGIO) at the close of Q1 2022, making it the firm’s largest stakeholder.
1. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Share Price (as of August 5): $3.01
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company which uses cell-programming technology to enable the biological production of novel drug treatments, food ingredients, and petrochemicals. As of August 5, shares of the company trade around $3 on the New York Stock Exchange, making it an exciting penny stock to buy.
On June 16, Jefferies analyst Laurence Alexander reiterated a ‘Buy’ rating on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) shares and lowered the price target to $4.35 from $11.50 on account of the weak macro backdrop which includes high interest rates and slowing demand. In July, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) agreed to purchase biotech firm Zymergen (NASDAQ:ZY) in a $300 million all-stock transaction.
Cathie Wood, the famed disruptive tech investor, significantly added to her Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) position in July, buying more than 10 million shares of the company during the month. Overall, 30 hedge funds disclosed bullish bets on the company shares at the end of the first quarter, with an aggregate value of $990.4 million.
You can also take a look at 15 Best Long-Term Stocks To Buy Now and Top 10 Logistics Companies In The World.
