5 Best Value Penny Stocks to Buy According to Hedge Funds

4. Yext Inc. (NYSE:YEXT)

Number of Hedge Fund Holders: 24

Yext Inc. (NYSE:YEXT) is one of the best value penny stocks to buy according to hedge funds. On June 2, Yext reported its financial results for FQ1 2027, which ended April 30. The company achieved $107.9 million in revenue and an Adjusted EBITDA of $26.9 million, representing a 25% margin. Additionally, Yext reported an ARR of $440.8 million and a basic net income per share of $0.02.

During the quarter, Yext Inc. (NYSE:YEXT) completed a tender offer that resulted in the repurchase of 24.3 million shares for $140 million and increased its separate open-market share repurchase authorization by $100 million. CEO Michael Walrath emphasized that the company’s structural efficiency and strong cash generation support its evolution as an infrastructure layer for brands deploying autonomous AI agents.

Looking ahead, management plans to leverage its cash position to fund internal research and development, pursue strategic acquisitions, and continue returning capital to shareholders. The company noted growth in its higher-value customer segment (those with ARR of $50,000 or more) as a key indicator of its long-term market potential.

Yext Inc. (NYSE:YEXT) offers a platform that responds to consumer inquiries around the globe. The cloud-based platform provides businesses with a centralized solution that includes controlling the content landing pages, managing customer reviews, and updating their content, among other things. It also offers professional customization of the platform.