In this article, we will list the 5 Best Value Penny Stocks to Buy According to Hedge Funds. Please visit 10 Best Value Penny Stocks to Buy According to Hedge Funds to see the extended list and the methodology behind it.
5. Galiano Gold Inc. (NYSEAMERICAN:GAU)
Number of Hedge Fund Holders: 22
Galiano Gold Inc. (NYSEAMERICAN:GAU) is one of the best value penny stocks to buy according to hedge funds. On May 22, Galiano Gold announced that its Board of Directors approved amendments to the company’s proposed Omnibus Equity Incentive Plan. These changes, which reflect suggestions from Institutional Shareholder Services, ensure the plan aligns with Galiano’s current corporate policies and practices.
The revisions specifically mandate that certain actions, such as extending stock option terms, reducing exercise prices, or permitting the transfer of options, now require formal shareholder approval. These updates also place tighter restrictions on amendments related to non-employee director participation and the Board’s discretionary power to modify the plan without investor input.
Galiano Gold Inc. (NYSEAMERICAN:GAU) filed the amended plan with both SEDAR+ and the US Securities and Exchange Commission, replacing the previous version issued in April. Shareholders will be asked to vote on the revised plan at the Annual General & Special Meeting scheduled for June 11, with the Board recommending a vote in favor.
Galiano Gold Inc. (NYSEAMERICAN:GAU), headquartered in Vancouver, Canada, was established in 1999. The company is engaged in the acquisition and exploration of mineral resources, with a primary focus on the Asanko Gold Mine in West Africa.
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.
3. N-Able Inc. (NYSE:NABL)
Number of Hedge Fund Holders: 25
N-Able Inc. (NYSE:NABL) is one of the best value penny stocks to buy according to hedge funds. On June 23, N-able launched Shadow AI Visibility across its N-central, N-sight, and Adlumin platforms to help organizations track and manage unauthorized AI tool usage. This tool provides identity-attributed insights into how AI applications and services are being used across endpoints without needing extra infrastructure. By closing this security blind spot, it enables IT and security teams to improve governance, compliance, and responsible AI adoption.
Furthermore, on June 2, N-able announced its flagship customer conference, Empower 2027, scheduled for September 20–22, 2027, in Scottsdale, Arizona. The event will gather IT professionals and managed service providers from around the world to focus on critical industry themes, including cybersecurity, automation, and AI. To make this experience more accessible, the company is simultaneously launching a global regional series titled “Empower on the Move.”
These events will take place in major cities, including Manchester, Frankfurt, Johannesburg, and Melbourne, beginning in June 2026. Unlike traditional roadshows, these regional gatherings will feature hands-on technical training, executive participation, and localized programming. By expanding the Empower experience, N-Able Inc. (NYSE:NABL) aims to foster stronger peer collaboration and provide actionable business strategies that customers can implement immediately within their own organizations.
N-Able Inc. (NYSE:NABL) is a Massachusetts-based global software company that offers enterprise-oriented services, including backup and data protection, remote monitoring and management, threat hunting, and others to small- and medium-sized businesses.
2. Clarivate (NYSE:CLVT)
Number of Hedge Fund Holders: 30
Clarivate (NYSE:CLVT) is one of the best value penny stocks to buy according to hedge funds. On May 29, Clarivate Plc introduced IPOne, a unified intelligence platform designed to integrate purpose-built AI agents with proprietary data to streamline intellectual property research and workflows. Developed in partnership with corporate IP teams and law firms, the platform supports complex processes such as patent discovery, trademark clearance, and litigation analysis.
The system allows users to use Clarivate’s (NYSE:CLVT) trusted data sets (including Derwent, Darts-ip, and CompuMark) directly within their existing workflows. By combining this curated intelligence with AI, the platform aims to enhance decision-making and help organizations maximize the value of their IP assets.
IPOne also uses Model Context Protocols/MCPs to securely connect with enterprise AI tools and LLMs. This integration allows organizations to embed authoritative data into their own systems, ensuring that AI-driven decisions remain transparent and under internal control.
Clarivate (NYSE:CLVT) is a technology company with services covering global information, analytics, and workflow solutions. The company has 3 segments: academia and government, oriented towards research & analytics, content aggregation, and AI-powered workflow software solutions; IP, which handles IP management software; and life sciences & healthcare, which focuses on R&D tools.
1. Kosmos Energy Ltd. (NYSE:KOS)
Number of Hedge Fund Holders: 43
Kosmos Energy Ltd. (NYSE:KOS) is one of the best value penny stocks to buy according to hedge funds. On June 17, Kosmos Energy announced the completed sale of its interests in the Ceiba Field and Okume Complex in Equatorial Guinea to Panoro Energy. The transaction resulted in a final cash payment of approximately $127 million, with the potential for an additional $40 million in contingent payments based on future oil prices and production levels.
The proceeds from this sale will be utilized to pay down debt under the company’s reserves-based lending facility. Furthermore, the divestment allows Kosmos to remove a $140 million asset retirement obligation from its balance sheet, enhancing the company’s overall financial resilience and liquidity.
By exiting these high-cost production assets, Kosmos Energy Ltd. (NYSE:KOS) aims to focus its capital and resources on higher-value projects. The company plans to release updated full-year 2026 guidance during its Q2 earnings announcement in August to reflect the impact of this completed transaction.
Kosmos Energy Ltd. (NYSE:KOS), an independent oil and gas company, focuses on offshore exploration, development, and production.
While we acknowledge the potential of KOS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KOS and that has 100x upside potential, check out our report about the cheapest AI stock.
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