5 Penny Stocks for Long-Term Profits

2. Edgio, Inc. (NASDAQ:EGIO)

Number of Hedge Fund Holders: 16

Share Price (as of August 4): $2.76

Edgio, Inc. (NASDAQ:EGIO) provides content delivery network services, such as video delivery, edge computing, cloud security, and real-time streaming. The company was previously known as Limelight Networks, and was rebranded in June 2022 after acquiring Yahoo’s Edgecast in an all-stock deal.

With billions of content-hungry digital screens around the world, content delivery companies such as Edgio, Inc. (NASDAQ:EGIO) are poised to see outsized growth in the coming years. On June 21, Cowen analyst Michael Elias revised the firm’s price target on Edgio, Inc. (NASDAQ:EGIO) to $5.00 from $5.50 and maintained an ‘Outperform’ rating on the company shares. The analyst noted that investors do not fully appreciate the potential upside from regaining previously lost traffic share with two of EGIO’s top 20 customers, as well as the potential for long-term upside to EBITDA following the integration of Edgecast.

16 hedge funds, out of the 912 tracked by Insider Monkey, were long Edgio, Inc. (NASDAQ:EGIO) at the end of March. This shows a positive trend from the quarter before where 11 hedge funds were stakeholders in the company. Lynrock Lake held a $18 million position in Edgio, Inc. (NASDAQ:EGIO) at the close of Q1 2022, making it the firm’s largest stakeholder.