5 Best Penny Stocks To Buy According To Hedge Funds

3. Amneal Pharmaceuticals, Inc. (NYSE:AMRX)

Number of Hedge Fund Holders: 17    

Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is placed third on our list of 11 best penny stocks to buy according to hedge funds. In late August, the share price of the company jumped more than 18% after it announced positive results from a late-stage trial testing of IPX-203, a drug for patients with Parkinson’s disease. In addition to a strong drug pipeline, the firm also boasts solid financials. The company reported a 15% year-on-year increase in revenue in the second quarter earnings, beating estimates by close to $12 million. 

In July, the FDA granted Amneal Pharmaceuticals, Inc. (NYSE:AMRX) ANDA approval for a generic of TobraDex, a drug for patients with steroid-responsive inflammatory ocular conditions. The share price of the firm has jumped 30% in the last three months. 

At the end of the second quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $53 million in Amneal Pharmaceuticals, Inc. (NYSE:AMRX), up from 15 in the previous quarter worth $77 million.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eversept Partners is a leading shareholder in Amneal Pharmaceuticals, Inc. (NYSE:AMRX) with 5.6 million shares worth more than $28 million.