5 Best Penny Stocks Under $1 According to Hedge Funds

In this article, we will be taking a look at the 5 Best Penny Stocks Under $1 According to Hedge Funds. If you wish to see the full list, visit 10 Best Penny Stocks Under $1 According to Hedge Funds.

5. Cardlytics, Inc. (NASDAQ:CDLX)

Number of Hedge Fund Holders: 12 

Stock Price as of Last Close of May 12: $0.67 

Cardlytics, Inc. (NASDAQ:CDLX) is among the best penny stocks.

TheFly reported on May 8 that Lake Street reduced its price target on CDLX to $1.25 from $1.50 while reiterating a Hold rating, citing a reset in expectations following the company’s first-quarter guidance and ongoing uncertainty tied to recent business changes.

Cardlytics, Inc. (NASDAQ:CDLX) reported its first-quarter 2026 results on May 7 for the period ended March 31, 2026. Revenue totaled $34.3 million, down 39% from $56.4 million a year earlier. Billings reached $58.1 million, a 37% decline from $92.1 million. Adjusted contribution came in at $19.7 million, down 28% year over year from $27.3 million. The company recorded a net loss of $4.5 million, or $0.08 per diluted share, improving from a $13.3 million loss, or $0.26 per share.

The corporation’s adjusted EBITDA was slightly positive at $0.2 million versus a negative $4.1 million last year. Adjusted net loss narrowed to $6.2 million, or $0.11 per share, compared with $10.3 million, or $0.20. Operating cash outflow was $5.6 million versus $6.7 million, while free cash flow was negative $7.9 million compared to negative $10.8 million. Monthly qualified users declined 8% to 197.0 million, and ACPU fell to $0.10 from $0.13. Usage metrics showed continued pressure across the platform’s audience and monetization levels during the quarter, with an overall trend

Cardlytics, Inc. (NASDAQ:CDLX) is a commerce media company that partners with banks to run rewards programs and deliver targeted ads using first-party card transaction data, along with purchase analytics.