In this article, we discuss the 5 penny stocks with the biggest upside. If you want to read about some more penny stocks with the biggest upside, go directly to 12 Penny Stocks With Biggest Upside.
5. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 12
Share Price as of December 20: $1.10
Denison Mines Corp. (NYSE:DNN) engages in the acquisition, exploration, development, extraction, processing, selling off, and investing of uranium properties in Canada. The stock has soared since the company released results from a long-term core leach metallurgic testing to support the feasibility study underway for the Phoenix in-situ recovery uranium mining operation. This operation was proposed for the Wheeler River project.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Sprott Asset Management is a leading shareholder in Denison Mines Corp. (NYSE:DNN) with 3.3 million shares worth more than $3.8 million.
4. Arbutus Biopharma Corporation (NASDAQ:ABUS)
Number of Hedge Fund Holders: 14
Share Price as of December 20: $2.42
Arbutus Biopharma Corporation (NASDAQ:ABUS) is a biopharmaceutical company that develops novel therapeutics for chronic Hepatitis B virus (HBV) infection, SARS-CoV-2, and other viruses in the United States. The firm recently posted earnings for the third quarter of 2022. The total revenue of the company grew 78.1% to $5.95 million. Arbutus said that the increase was mainly due to $2.3 million of revenue recognition from its license agreement with Qilu based on employee labor hours expended by the company during the third quarter of 2022.
On November 10, investment advisory H.C. Wainwright maintained a Buy rating on Arbutus Biopharma Corporation (NASDAQ:ABUS) stock and lowered the price target to $6 from $7.50. Analyst Ed Arce issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Seas Capital is a leading shareholder in Arbutus Biopharma Corporation (NASDAQ:ABUS) with 5.6 million shares worth more than $10.8 million.
3. Ardelyx, Inc. (NASDAQ:ARDX)
Number of Hedge Fund Holders: 19
Share Price as of December 20: $1.76
Ardelyx, Inc. (NASDAQ:ARDX) is a biopharmaceutical company that discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. On November 17, Piper Sandler analyst Christopher Raymond upgraded Ardelyx, Inc. (NASDAQ:ARDX) to Overweight from Neutral with a price target of $8, up from $3, noting that the FDA advisory committee gave a surprisingly positive vote of 9-4 in favor of tenapanor as monotherapy and 10-2 as combo therapy for the control of serum phosphorus in dialysis-dependent chronic kidney disease.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Deep Track Capital is a leading shareholder in Ardelyx, Inc. (NASDAQ:ARDX) with 14.9 million shares worth more than $17.7 million.
2. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 24
Share Price as of December 20: $4.60
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions worldwide. On December 12, Nokia unveiled that Telefónica Germany and Nokia have aggregated sub-6 GHz spectrum frequencies in an industry-first two-component carrier uplink Carrier Aggregation trial on 5G Standalone. On November 9, Deutsche Bank analyst Robert Sanders Nokia Oyj maintained a Buy rating on Nokia Oyj (NYSE:NOK) stock and lowered the price target to EUR 5.50 from EUR 6.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Berkshire Hathaway Inc. (NYSE: BRK-A) with 20.3 million shares worth more than $86.7 million.
In its Q3 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Nokia Oyj (NYSE:NOK) was one of them. Here is what the fund said:
“Two clear examples of value traps that I remember with particular anger include Nokia (NYSE:NOK). Two companies suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period, players such as Apple and Samsung wiped the Finnish giant off the map.”
1. Opendoor Technologies Inc. (NASDAQ:OPEN)
Number of Hedge Fund Holders: 41
Share Price as of December 20: $1.33
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate in the United States. On August 4, Opendoor Technologies declared a partnership with Zillow Group, a Seattle-based real estate giant, which will allow home sellers on Zillow’s platform to request an instant cash offer from Opendoor. The transaction of purchase is facilitated by Opendoor.
On October 25, JMPcurities analyst Nicholas Jones maintained an Outperform rating on Opendoor Technologies Inc. (NASDAQ:OPEN) stock and lowered the price target to $4.50 from $9, noting that valuations in the sector have compressed materially as stocks with exposure to residential real estate have seen sharp multiple compression on fears around the increasing probability of a 2023 recession, rising interest rates, and low affordability.
At the end of the third quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $396.4 million in Opendoor Technologies Inc. (NASDAQ:OPEN), compared to 39 in the preceding quarter worth $861.7 million.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Opendoor Technologies Inc. (NASDAQ:OPEN) was one of them. Here is what the fund said:
“The Fund invests in secular growth and innovative businesses across all market capitalizations, with the bulk of the portfolio landing in the large-cap zone. The Fund is categorized as US Large Growth by Morningstar. As of the end of the fourth quarter, the largest market cap holding in the Fund was $2.5 trillion and the smallest was $791 million. The median market cap of the Fund was $27.5 billion. The Fund had $1.7 billion of assets under management. The Fund had investments in 63 securities. The Fund’s top 10 positions accounted for 45.4% of net assets. Fund inflows were positive for 2021. We sold Opendoor Technologies Inc. because we identified issues relating to our long-term theses in the company, and we decided to exit the positions to fund other purchases.”
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