5 Penny Stocks to Buy in March

2. Pixelworks, Inc. (NASDAQ:PXLW)

Number of Hedge Fund Holders: 15

Share Price (as of March 3): $3.09

Next up is Pixelworks, Inc. (NASDAQ:PXLW), a US-based company which makes semiconductors and digital display software solutions used by the smartphone industry. The firm boasts 338 patents related to video display processor products.

Colliers analyst Derek Soderberg in January gave Pixelworks, Inc. (NASDAQ:PXLW) a ‘Buy’ rating, up from ‘Neutral’ and set a $5 price target. The analyst sees a better supply chain situation boosting the firm’s mobile business, and called Pixelworks, Inc.’s (NASDAQ:PXLW) outlook for 2022 ‘too good to ignore’.

Pixelworks, Inc. (NASDAQ:PXLW) provides its digital display products to Chinese smartphone-maker OnePlus, which deploys the firm’s Pro Software solution in the OnePlus 10 Pro smartphone to improve screen color accuracy. Vivo, another Chinese smartphone company, also uses Pixelworks’ X5 Pro visual processor in its iQOO 9 series smartphone, to improve digital displays during the running of heavy smartphone games.

Investors realize the upward potential of  Pixelworks, Inc. (NASDAQ:PXLW), with 15 hedge funds holding stakes in the firm at the close of the fourth quarter, in comparison to 12 hedge funds in Q3. Millennium Management of Israel Englander was the top shareholder in Pixelworks, Inc. (NASDAQ:PXLW) in the fourth quarter, with a stake consisting of 1.68 million shares worth $7.4 million.

Pixelworks, Inc. (NASDAQ:PXLW) posted an EPS of -$0.03 for the fourth quarter, beating consensus estimates by $0.02. Quarterly revenue of $16.59 million was also above analysts’ forecasts by $113,000.