In this piece, we will take a look at the top five penny stocks that are too cheap to ignore. To learn more about penny stocks and other companies, take a look at 10 Penny Stocks To Buy That Are Too Cheap To Ignore.
5. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders: 15
Banco Santander, S.A. (NYSE:SAN) is a Spanish bank that is one of the oldest of its kind after being set up in 1856. It offers accounts, mortgages, loans, and working capital solutions.
Banco Santander, S.A. (NYSE:SAN) posted EUR9.5 billion in net interest income during its second fiscal quarter, which marked an 8% growth. This translated into a net income of 2.6 billion Euros, and earnings per share of EUR0.131. Cumulatively, all these led to Banco Santander, S.A. (NYSE:SAN)’s tangible book value per share sitting at EUR4.24, which is significantly higher than its current share price of $2.61.
Banco Santander, S.A. (NYSE:SAN) also pays a 3 cent dividend for a 4.21% yield. Insider Monkey’s Q2 2022 survey covering 895 hedge funds revealed that nine had invested in the bank.
Banco Santander, S.A. (NYSE:SAN)’s largest investor is John W. Rogers’ Ariel Investments which owns one million shares that are worth $16 million.
4. Ambev S.A. (NYSE:ABEV)
Number of Hedge Fund Holders: 18
Ambev S.A. (NYSE:ABEV) is a beverage company headquartered in Sao Paulo, Brazil. The firm sells drinks such as beers and soft drinks alongside other products like powdered and natural juices.
Ambev S.A. (NYSE:ABEV) is Latin America’s largest beverage distributor, and the firm is recovering from the devastation of the coronavirus pandemic as its second quarter earnings revealed that it had earned BRL 10 billion in revenue for 15% annual growth and BRL 5.5 billion operating income for an 18% organic annual growth. Ambev S.A. (NYSE:ABEV) is also set to benefit from the FIFA World Cup in Qatar starting in November 2022, as the festivities will see a major demand uptick for its beer.
Ambev S.A. (NYSE:ABEV) pays a 5 cent dividend for a 6.93% yield and its shares are up by 6.25% year to date. As part of their June quarter of 2022 holdings, 18 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
Ambev S.A. (NYSE:ABEV)’s largest investor is Jean-Marie Eveillard’s First Eagle Investment Management which owns 279 million shares that are worth $700 million.
Harding Loevner mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“This quarter, individual stock selection decisions led to a reduction in our overweight to Consumer Staples. We sold Ambev S.A. (NYSE:ABEV), Brazil’s dominant brewer with strong franchises across South and Central America, which we owned since 2003. Its profit margins have declined in recent years, and management’s strategy to restore them is to entice Brazilians (whose beer consumption is already high) to trade up to premium brands. Despite our high regard for Ambev’s management, we think this strategy will be unsuccessful so long as the Brazilian consumer is under financial pressure from inflation and high unemployment. Ambev is still a high-quality, growing company, but we think there are more appealing opportunities in Brazil and beyond.”
3. Allego N.V. (NYSE:ALLG)
Number of Hedge Fund Holders: 19
Allego N.V. (NYSE:ALLG) is an electric vehicle charging company that is based in Arnhem, the Netherlands. The firm has more than thirty thousand charging ports in Europe that provide services for cars, buses, trucks, and motors.
Allego N.V. (NYSE:ALLG) uses a proprietary software solution that lets it identify areas with the strongest demand and revenue for its products. It uses these outputs to tailor its products to the market, and the charging sites are OEM-agnostic, which then allows the company to cast a wide net with its chargers. Allego N.V. (NYSE:ALLG) already has 12% of the European electric vehicle charging market, and it targets each of its markets through subsidiaries, which ensures that decision making is swift and in line with local market conditions.
Credit Suisse set a $10 share price target for Allego N.V. (NYSE:ALLG) in September 2022 as it stated that the firm’s revenues are estimated to grow by a whopping compounded annual growth rate of 44% between 2022 and 2030. 19 out of the 895 hedge funds polled by Insider Monkey as part of their second quarter of 2022 investments had held a stake in Allego N.V. (NYSE:ALLG).
2. Wheels Up Experience Inc. (NYSE:UP)
Number of Hedge Fund Holders: 19
Wheels Up Experience Inc. (NYSE:UP) is an American company that provides private aviation services. These include on demand flights, aircraft management, a variety of charter packages, signature events, and special solutions. It is headquartered in New York, New York.
Wheels Up Experience Inc. (NYSE:UP) is aiming to bring in $1.5 billion in revenue by the end of this year, for more than fourfold growth over 2018 when the firm had posted $300 million in the same metric. The firm reported $425 million in revenue during its second quarter, which marked a strong 50% annual growth. Wheels Up Experience Inc. (NYSE:UP) has a partnership with Delta Airlines as well, and the firm has now deployed its own fleet management system (FMS) that allows it to have end to end visibility in its aircraft visibility and maintenance.
Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 19 had held a stake in Wheels Up Experience Inc. (NYSE:UP).
Ben Levine, Andrew Manuel, and Stefan Renold’s LMR Partners is Wheels Up Experience Inc. (NYSE:UP)’s largest investor. It owns 13 million shares that are worth $2.6 million.
1. Canoo Inc. (NASDAQ:GOEV)
Number of Hedge Fund Holders: 20
Canoo Inc. (NASDAQ:GOEV) is an American electric vehicle company that is headquartered in Torrance, California. The firm designs electric vehicles for personal and consumer use and it also sells a skateboard chassis platform for other companies to build their cars on.
Canoo Inc. (NASDAQ:GOEV) is aiming to leverage the scale and brand presence of Walmart to drive up its product sales. The company is slated to begin its electric vehicle production in 2023, and it recently moved its headquartered to Bentonville, Arkansas – the city in which Walmart is also based. It has also entered into an agreement to sell 4,500 last mile delivery vans to the retailer, with the option of adding on another 5,500 vehicles. Canoo Inc. (NASDAQ:GOEV) has received $300 million from Walmart for this contract and it has also issued a large share warrant of 61.2 million shares to the company with an exercise price of $2.15 per share.
Stifel set a $4 share price target for the company in September 2022 as it shared that Canoo Inc. (NASDAQ:GOEV) is targeting the most profitable automotive segment. As this year’s June quarter ended, 20 out of the 895 hedge funds polled by Insider Monkey had bought Canoo Inc. (NASDAQ:GOEV)’s shares.
Out of these, Canoo Inc. (NASDAQ:GOEV)’s largest investor is Jim Simons’ Renaissance Technologies which owns one million shares that are worth $1.9 million.
Disclosure: None. You can also take a look at 10 Best ESG Stocks to Invest In and Top 10 Women Owned Stocks To Buy.
