5 Best Psychedelic Stocks to Buy According to Hedge Funds

4. Relmada Therapeutics, Inc. (NASDAQ:RLMD)

Number of Hedge Fund Holders: 18

Relmada Therapeutics, Inc. (NASDAQ:RLMD) is a Florida-based clinical-stage biotechnology company, focused on developing treatments for central nervous system diseases and other disorders. On December 8, Joon Lee, an analyst at Truist, downgraded Relmada Therapeutics, Inc. (NASDAQ:RLMD) by lowering the firm’s price target on the shares from $7 to $4, while maintaining a Hold rating. The reason for the downgrade is the company’s announcement of the second Phase 3 trial failure of REL-1017 in MDD as an adjunctive therapy, known as RELIANCE I, which comes after the first Phase 3 failure as a monotherapy in RELIANCE III. The analyst believes that there is a low possibility of RELIANCE II working, and the outlook for REL-1017 is bleak, which has led him to reduce the price target to reflect the company’s current cash per share value.

According to Insider Monkey’s fourth quarter database, 18 hedge funds were long Relmada Therapeutics, Inc. (NASDAQ:RLMD), compared to 23 funds in the prior quarter. David Kroin’s Deep Track Capital held the biggest position in the company.