5 Penny Stocks with Upcoming Growth Catalysts

3. CynergisTek, Inc. (NYSE:CTEK)

Number of Hedge Fund Holders: 3

Share Price as of March 14: $1.31

CynergisTek, Inc. (NYSE:CTEK) is a Texas-based cybersecurity company that serves the healthcare, education, financial services, government, internet and media, and manufacturing industries with its products and services. 

On March 3, CynergisTek, Inc. (NYSE:CTEK) announced that it had renewed a six-figure vendor security management contract for three more years with a leading network of healthcare providers from the Mid-Atlantic region. CynergisTek, Inc. (NYSE:CTEK) will provide third-party risk management services to this client, and this service deal with the healthcare network was initially agreed upon in 2013.

A total of 3 hedge funds were bullish on CynergisTek, Inc. (NYSE:CTEK) in the fourth quarter of 2021, with collective stakes valued at $273,000. According to Insider Monkey’s data, Renaissance Technologies, Two Sigma Advisors, and Millennium Management held long positions in the stock. 

Here is what Long Cast Advisers had to say about CynergisTek, Inc. (NYSE:CTEK) in its Q4 2020 investor letter:

“CTEK remains the big drain on returns. What I wrote last quarter, about the frustration and the opportunity, remains relevant. My patience in the company was recently enhanced via conversations with industry participants as well as by December’s announced entry into the CMMC market. This is a new regulated market that requires DoD subcontractors to use third party certification assessments (C3PAO) to audit their cybersecurity practices, previously done by self-audit. While I expect the market to be competitive (and eventually saturated), they are currently one of only 22 approved to perform these assessments. I’m “hanging my hat” not on CMMC since the approval process is a low bar, but on the strong brand in the important healthcare cybersecurity niche. At less than 1x sales, I think the stock is cheap. At some point I think it will return to growth and our patience will be rewarded.”