In this article, we discuss 5 best penny stocks to buy in September. If you want to see more stocks in this selection, check out 10 Best Penny Stocks to Buy in September.
5. Fortress Biotech, Inc. (NASDAQ:FBIO)
Number of Hedge Fund Holders: 11
Share Price as of September 7: $1.10
Fortress Biotech, Inc. (NASDAQ:FBIO) is a New York-based company that develops and commercializes pharmaceutical and biotechnology products. On August 11, Fortress Biotech, Inc. (NASDAQ:FBIO) announced that its cytomegalovirus (CMV) vaccine Triplex received a $20 million grant from the National Institute of Allergy and Infectious Diseases for control of CMV in patients facing liver transplantation.
On August 4, Ladenburg analyst Jeffrey Cohen assumed coverage of Fortress Biotech, Inc. (NASDAQ:FBIO) with a Buy rating and a $6 price target, categorizing the company as an “innovative biotechnology development engine” that delivers cutting-edge assets. There are presently 12 entities building a pipeline of assets, 4 of which are publicly traded, and the analyst believes Fortress Biotech, Inc. (NASDAQ:FBIO)’s business model provides higher diversification and lower risk when compared to alternative biotechnology candidates.
Among the hedge funds tracked by Insider Monkey, 11 funds reported owning stakes in Fortress Biotech, Inc. (NASDAQ:FBIO) at the end of June 2022, compared to 10 funds in the prior quarter. Nantahala Capital Management is the biggest stakeholder of the company, with 8.75 million shares worth $7.35 million.
4. Compass, Inc. (NYSE:COMP)
Number of Hedge Fund Holders: 13
Share Price as of September 7: $2.895
Compass, Inc. (NYSE:COMP) is a New York-based real estate brokerage firm that uses a cloud-based platform for seamless customer relationship management, marketing, client service, and other functionalities in the real estate industry. The company reported a Q2 revenue of $2.02 billion, climbing 3.6% year over year. It is one of the best penny stocks to consider for a diversified portfolio.
Needham transferred its coverage of Compass, Inc. (NYSE:COMP) to analyst Bernie McTernan on September 1, who assigned a Buy rating to the stock with a price target of $5. Compass, Inc. (NYSE:COMP) represents the preferred way to play the difficult US real estate market, with room for cost control that will pave a path to profitability even if the macro environment remains difficult, the analyst told investors. Compass, Inc. (NYSE:COMP)’s performance over the last quarter and updated guidance represents a clearing event to take expectations lower, and he sees a large but favorable risk/reward from here, the analyst added.
According to Insider Monkey’s data, 13 hedge funds were long Compass, Inc. (NYSE:COMP) at the end of June 2022, with collective stakes worth $128 million. Jacob Mitchell’s Antipodes Partners is the leading position holder in the company, with 12.7 million shares worth over $46 million.
Here is what Artisan Small Cap Fund has to say about Compass, Inc. (NYSE:COMP) in its Q3 2021 investor letter:
“We added several new GardenSM positions in Q3 including Compass. Compass is a real estate brokerage firm which provides its agents with a proprietary, end-to-end cloud-based platform. The company helps address the needs of buying and selling homes from client prospecting to closing, which includes customer relationship management, AI-driven prospecting, marketing (digital, social, email, video, print, signage, lead generation), market analysis and collaboration tools. The platform also uses machine learning, artificial intelligence and other advanced data analytics strategies to draw insights across the platform, allowing agents to be more efficient and informed in their selling efforts. We believe this technology advantage is key to the company continuing to disrupt and capture real estate commission market share. We have been impressed with the company’s ability to capture 4% market share since it was founded in 2012 (vs. Redfin, founded in 2002, holding a 1% market share). The company’s profit cycle can also be boosted by adding on additional services such as title insurance referral and escrow services, real estate marketing, home renovation referrals, home insurance and home warranty referrals—all of which we believe have a significantly larger addressable market than commissions (~7X).”
3. Adverum Biotechnologies, Inc. (NASDAQ:ADVM)
Number of Hedge Fund Holders: 14
Share Price as of September 7: $1.095
Adverum Biotechnologies, Inc. (NASDAQ:ADVM) is a California-based clinical-stage gene therapy company that focuses on ocular and rare diseases. Adverum Biotechnologies, Inc. (NASDAQ:ADVM) expects its cash position of $235.8 million as of June 30, 2022 to fund operations into 2025. It is one of the best penny stocks to buy in September.
Truist analyst Joon Lee on July 7 upgraded Adverum Biotechnologies, Inc. (NASDAQ:ADVM) to Buy from Hold with a price target of $4, up from $3. The analyst now sees a “clearer development path” for ixoberogene soroparvovec in wet age-related macular degeneration. In addition to that, Adverum Biotechnologies, Inc. (NASDAQ:ADVM)’s cash runway has been extended by 1 year into 2025 after its restructuring. The analyst is “relieved” to see Adverum Biotechnologies, Inc. (NASDAQ:ADVM)’s deal with the FDA and the European Medicines Agency on the Phase 2 trial design.
According to Insider Monkey’s data, 14 hedge funds were bullish on Adverum Biotechnologies, Inc. (NASDAQ:ADVM) at the end of the second quarter of 2022, compared to 11 funds in the last quarter. Lawrence Kam’s Sonic Capital is the leading position holder in the company, with 6.5 million shares worth about $8 million.
2. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 22
Share Price as of September 7: $3.465
Archer Aviation Inc. (NYSE:ACHR) was incorporated in 2018 and is headquartered in Palo Alto, California. It operates as an urban air mobility company, manufacturing and operating electric vertical takeoff and landing aircrafts to carry passengers. On August 10, Archer Aviation Inc. (NYSE:ACHR) announced a $10 million pre-delivery payment from United Airlines Holdings, Inc. (NASDAQ:UAL) for 100 electric vertical take-off and landing aircrafts.
On August 16, Deutsche Bank analyst Edison Yu raised the price target on Archer Aviation Inc. (NYSE:ACHR) to $12 from $10 and reiterated a Buy rating on the shares. After Q2 earnings from the eVTOL group, the analyst has more confidence that Archer Aviation Inc. (NYSE:ACHR) is “making fast and underappreciated progress” towards bringing an eVTOL to market.
According to Insider Monkey’s database, Archer Aviation Inc. (NYSE:ACHR) was part of 22 hedge fund portfolios at the end of Q2 2022, compared to 28 funds in the last quarter. Sculptor Capital held the leading stake in the company, comprising 2.90 million shares worth $28.5 million.
1. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 29
Share Price as of September 7: $2.555
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company that develops a platform for cell programming. The company serves multiple end markets, such as specialty chemicals, agriculture, food, consumer products, and pharmaceuticals. The company’s Q2 2022 financials included a top-line beat and a guidance raise. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) also raised its 2022 revenue outlook to $425 million-$440 million from the earlier forecast of $375 million-$390 million, as well as exceeding the Street estimates.
On August 16, Raymond James analyst Rahul Sarugaser raised the price target on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to $14.50 from $11.50 and maintained an Outperform rating on the shares. The analyst sees great significance in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) adding 13 sector-diversified new programs in the June quarter, boosting his confidence that it should meet its target of 60 new programs this year.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were long Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of Q2 2022, compared to 30 funds in the prior quarter.
You can also take a look at 10 Best Media Stocks To Buy and Best Cheap Tech Stocks.
