5 Penny Stocks to Buy in April

2. Aterian, Inc. (NASDAQ:ATER)

Number of Hedge Fund Holders: 9

Share Price as of April 6: $3.179

Aterian, Inc. (NASDAQ:ATER) is a New York-based consumer products company using artificial intelligence to power an e-commerce marketplace. The company offers health and beauty products, electronic appliances, and essential oils on its platform. The shares have surged almost 31% over the last month. 

Alliance Global Partners analyst Brian Kinstlinger on March 11 maintained a Buy recommendation on Aterian, Inc. (NASDAQ:ATER) but lowered the price target on the shares to $4.50 from $9 after the Q4 results. The analyst cited dilution from the latest equity offering for the price target drop.

Among the hedge funds tracked by Insider Monkey at the end of December 2021, 9 funds held long positions in Aterian, Inc. (NASDAQ:ATER), compared to 6 funds in the preceding quarter. The Q4 stakes amounted to more than $3 million.