5 Best Medical Stocks Under $5

2. Verastem, Inc. (NASDAQ:VSTM)

Number of Hedge Fund Holders: 18

Verastem, Inc. (NASDAQ:VSTM) is a biotechnology company headquartered in Needham, Massachusetts that focuses on developing cancer treatments. It targets several kinds of cancers such as ovarian cancer and lung cancer.

Verastem, Inc. (NASDAQ:VSTM) has a strong balance sheet, with the company’s cash balance totaling $94 million by June 2022 while it reported $19.6 million in operating expenses in its second quarter. At this run rate, the firm is in a good position for more than a year. All of the firm’s treatment regiments for a host of indications of lung and ovarian cancers are in phase two trials, providing it with sufficient future catalysts.

Verastem, Inc. (NASDAQ:VSTM)’s share price target was lowered to $5 from $8 by BTIG in October 2022, but the firm kept a Buy rating for the shares as it maintained that the firm’s deal for a drug with another company has favorable terms. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 18 as having bought Verastem, Inc. (NASDAQ:VSTM)’s shares.

James Baker and Felix Baker’s Baker Bros. Advisors is Verastem, Inc. (NASDAQ:VSTM)’s largest investor. It owns 26 million shares that are worth $31 million.