What Makes Baytex Energy (BTE) One of the Most Favored NYSE Penny Stocks According to Hedge Funds

Recent price target adjustments, along with the renewal of a share buyback program, make Baytex Energy Corp. (NYSE:BTE) one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 10, CIBC increased its target price for Baytex Energy Corp. (NYSE:BTE) from $5.12 to $5.3, which results in an adjusted upside potential of over 30%. The firm reiterated its Neutral rating on the stock.

On June 26, Baytex Energy Corp. (NYSE:BTE) announced that the Toronto Stock Exchange approved the renewal of the company’s normal course issuer bid (NCIB). This allows the company to repurchase up to 70.9 million shares of its common stock over a one-year period between July 2, 2026, and July 1, 2027.

The company is returning cash to its shareholders through both quarterly dividend payouts and share buybacks. The renewal of the NCIB allows the management to continue rewarding shareholders with a combination of both. Management believes that buybacks are an effective way to enhance per-share metrics and return capital to investors.

Under the latest NCIB renewal, the total number of shares available for buyback is approximately 10% of the company’s free float of 712.59 million shares as of June 19. Management highlighted that the buyback of shares will be executed in the open market at prevailing market rates. This will be done using services from the New York Stock Exchange, Toronto Stock Exchange, or alternative platforms across Canada and the United States.

Baytex Energy Corp. (NYSE:BTE) is an oil and gas company that produces and develops crude oil and natural gas within the Western Canadian Sedimentary Basin. It produces various types of hydrocarbon products, including light oil, condensate, heavy oil, natural gas liquids, and natural gas.

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