5 Best Penny Stocks to Buy and Hold Under $5

3. Uranium Royalty Corp. (NASDAQ:UROY)

On April 20, 2026, Raymond James upgraded Uranium Royalty Corp. (NASDAQ:UROY) to Outperform from Market Perform and raised its price target to C$6.25 from C$5.75. The firm said the company provides exposure to uranium prices through a high-margin royalty model that limits operating and capital cost exposure. It also highlighted a portfolio diversified across relatively stable jurisdictions and supported by strong operators, with added upside from exploration and asset expansion alongside a solid balance sheet.

Earlier, on April 15, 2026, Uranium Royalty Corp. (NASDAQ:UROY) entered into an agreement to combine with entities holding a 92% interest in Sweetwater Royalties from funds managed by Orion Resource Partners and the Ontario Teachers’ Pension Plan. The transaction implies a 100% enterprise value of approximately $1.9B for Sweetwater and about $1.1B in attributable equity value to be acquired by URC. The combined company will operate under a newly formed U.S.-domiciled parent, “Uranium Royalty Corp.” or “New URC,” which plans to apply for a NASDAQ listing.

Under the deal, the sellers will receive approximately $330M in cash and $813M in New URC Shares at a deemed value of $3.64 per share. Orion and Ontario Teachers’ are expected to hold approximately 43% and 16% of New URC’s pro forma shares outstanding and will have board nomination rights for up to two and one directors, respectively, with total representation capped below 50%. The transaction is expected to be accretive to NAV, cash flow, and EPS, with a shareholder meeting expected on or about July and closing expected on or about Q3, subject to regulatory approvals. Following completion, Scott Melbye will remain CEO and Amir Adnani Chairman, while Sweetwater will continue under CEO Damon Barber.

Uranium Royalty Corp. (NASDAQ:UROY) operates as a pure-play uranium royalty company in Canada, the United States, Namibia, and Spain.