In this article, we discuss the top 5 multibagger penny stocks to buy in 2022. If you want to read our analysis of the returns being generated by penny stocks, go directly to the Top 10 Multibagger Penny Stocks to Buy in 2022.
5. Diebold Nixdorf, Incorporated (NYSE:DBD)
Number of Hedge Fund Holders: 16
Diebold Nixdorf, Incorporated (NYSE:DBD) is a North Canton, Ohio-based provider of banking solutions and retail technology to the financial sector. The company has installed more than two million point-of-sale (POS) software and automated teller machines (ATMs) as of 2022.
Diebold Nixdorf, Incorporated (NYSE:DBD) has more than 3,000 patents under its ownership. On July 8, Matt Bryson at Wedbush upgraded Diebold Nixdorf, Incorporated (NYSE:DBD) stock from a Neutral to an Outperform rating with a price target of $5. The analyst thinks that despite the economic uncertainty, Diebold Nixdorf, Incorporated (NYSE:DBD) is in a position to see its revenue and earnings improve in 2022 and 2023. Bryson backed this claim up by highlighting the company’s record level of backlog compared to the expected sales. Bryson also added that Diebold Nixdorf, Incorporated (NYSE:DBD) is in the process of ramping up its new ATMs. Diebold Nixdorf’s offerings could result in potential cost savings for customers at a time when wages are constantly rising, and suitable resources are challenging to find.
Of the 912 hedge funds in Insider Monkey’s database, Diebold Nixdorf, Incorporated (NYSE:DBD) was held by 16 hedge funds as of Q1 2022.
4. BIT Mining Limited (NYSE:BTCM)
Number of Hedge Fund Holders: 5
BIT Mining Limited (NYSE:BTCM) is a Hong Kong-based publicly listed cryptocurrency mining company that serves more than two million customers globally. The company operates a 150 megawatts cryptocurrency mining data center in Ohio. The domain name and cryptocurrency wallet of BTC.com also come under the ownership of BIT Mining Limited (NYSE:BTCM).
BIT Mining Limited’s (NYSE:BTCM) ability to achieve healthy revenue and profitability relies upon its ability to mine large volumes of cryptocurrencies and the strong price levels. BIT Mining is betting on Ethereum, and the current dip in the prices of cryptocurrencies provides an attractive opportunity for potential investors to take a position in the stock. A major benefit of getting involved in the Ethereum blockchain technology is that it not only performs the role of a cryptocurrency but also has an integral role in decentralized finance or DeFi. BIT Mining Limited (NYSE:BTCM) is working on enhancing its focus on the US. To direct its resources to the North American region, the company divested 51% of its stake in an unaffiliated third party for $9.98 million on July 12.
As of Q1 2022, 5 hedge funds held a cumulative stake worth over $2 million in BIT Mining Limited (NYSE:BTCM).
3. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Fund Holders: 10
Nano Dimension Ltd. (NASDAQ:NNDM) is a Waltham, Massachusetts-based company involved in the 3D printing of electronics and additively manufactured electronics (AME).
Nano Dimension Ltd. (NASDAQ:NNDM) has a share repurchase program of up to $100 million in place. Nano Dimension’s hardware printers have the highest contribution to the company’s overall sales as of Q1 2022. The company recorded a revenue of $10.43 million during the first quarter, reflecting a YoY increase of 1186.07%. Furthermore, Nano Dimension Ltd.’s (NASDAQ:NNDM) net profit margin rose by 72.37% YoY during Q1.
Cathy Wood’s Ark Investment Management is the biggest hedge fund holder of Nano Dimension Ltd. (NASDAQ:NNDM) stock, with over 16.32 million shares. Nano Dimension Ltd. (NASDAQ:NNDM) stock has been a part of the hedge fund’s portfolio since Q3 2019. The total holding as of Q1 2022 is at the fifth highest level in the history of the hedge fund.
2. CleanSpark, Inc. (NASDAQ:CLSK)
Number of Hedge Fund Holders: 4
CleanSpark, Inc. (NASDAQ:CLSK) is a Henderson, Nevada-based sustainable bitcoin mining company. It also provides smart power systems for residential users and software solutions that aid IoT products in efficiently managing peak load.
In an investor note issued on June 3, Gregory Lewis at BTIG maintained a Buy rating on CleanSpark, Inc. (NASDAQ:CLSK) stock with a target price of $10. The analyst highlighted that the mining stocks have given back their gains despite the gross margins on mining still hovering around the 47.5% level.
CleanSpark, Inc. (NASDAQ:CLSK) is on a strong growth trajectory, as reflected by some of the company’s initiatives. In June, the management announced that it had acquired a purchase contract for 1,800 Antminer S19 XP units to achieve its goal of infrastructure expansion. CleanSpark, Inc. (NASDAQ:CLSK) saw its revenue quadruple to $41.6 million in Q1, up from $8.1 in the first quarter of 2020. The company’s strong growth plans provide an opportunity to investors to earn healthy returns in the future.
CleanSpark, Inc. (NASDAQ:CLSK) was held by 4 hedge funds at the end of Q1 2022.
1. Sunworks, Inc. (NASDAQ:SUNW)
Number of Hedge Fund Holders: 7
Sunworks, Inc. (NASDAQ:SUNW) is a Provo, Utah-based provider of solar power solutions.
In April, Donovan Schafer at Northland gave Sunworks, Inc. (NASDAQ:SUNW) an Outperform rating with a price target of $4.50. The analyst thinks that the company is the only publicly listed operator in the solar industry with a keen focus on controlling the installation, logistics, and procurement processes and making it their key competitive advantage. Schaffer highlighted Sunworks, Inc.’s (NASDAQ:SUNW) “differentiated” installation-focused business model for residential customers. He sees an attractive entry position for the investors at the current price levels.
Israel Englander’s Millennium Management is the biggest hedge fund holder of Sunworks, Inc. (NASDAQ:SUNW) stock, with ownership of over 603,519 shares or 1.83% of the total shares outstanding as of Q1 2022.
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