5 Best IPO Stocks to Invest In Right Now

2. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 20

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biopharmaceutical company that develops several treatments to treat inflammatory bowel disease. The firm’s treatments also target tumors and it is headquartered in San Diego, California, the United States.

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is playing in a $7.4 billion market for colon cancer, and phase one tests of its drugs have already shown positive safety data. The company is also targeting interstitial lung disease with its medicines – a key point since this disease has seen few if any, treatment options over the years. Prometheus Biosciences, Inc. (NASDAQ:RXDX) listed its shares on the public market in March 2021, and so far, the shares have appreciated by 122%.

Insider Monkey profiled 895 hedge funds for their Q2 2022 holdings and discovered that 20 had bought Prometheus Biosciences, Inc. (NASDAQ:RXDX)’s shares. Wells Fargo raised the company’s share price target to $71 from $51 in August 2022, sharing that expected readouts of the company’s drug are very impressive.

Prometheus Biosciences, Inc. (NASDAQ:RXDX)’s largest investor is Bihua Chen’s Cormorant Asset Management which owns 2 million shares that are worth $57 million.