5 Best Psychedelic Stocks to Buy According to Hedge Funds

3. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 73

AbbVie Inc. (NYSE:ABBV) develops, manufactures, and sells pharmaceuticals worldwide. In May 2020, AbbVie Inc. (NYSE:ABBV) gained a stake in the psychedelic drugs market through the acquisition of Allergan PLC. It is one of the best psychedelic stocks to consider. On February 16, the company declared a quarterly dividend of $1.48 per share, in line with previous. The dividend is payable on May 15, to shareholders of record on April 14. 

On March 1, Guggenheim analyst Vamil Divan initiated coverage of AbbVie Inc. (NYSE:ABBV) with a Buy rating and a $172 price target. Although many investors have been focusing on the decline of Humira’s sales due to the loss of U.S. market exclusivity, the analyst believes that this has caused them to overlook the strength of the rest of AbbVie’s business, which includes Skyrizi, Rinvoq, and Vraylar. The analyst thinks that these products have the potential to bring in more profits through recent or upcoming line extensions. The firm also expects that AbbVie’s pipeline assets, such as epcoritamab and Teliso-V, will help to stabilize the company’s oncology business.

According to Insider Monkey’s fourth quarter database, 73 hedge funds were long AbbVie Inc. (NYSE:ABBV), compared to 80 funds in the preceding quarter. Cliff Asness’ AQR Capital Management is a significant position holder in the company, with 1.4 million shares worth $229 million. 

Alger Capital made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q4 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that develops and markets drugs in areas such as immunology. virology and oncology. Recently, the company expanded through the acquisition of Allergan, which added robust growth assets to help offset the loss of U.S. patent protection for Humira, a leading treatment used for rheumatology, dermatology. gastroenterology, and ophthalmology. While AbbVie reported weak third quarter revenues across the board, the U.S. Food and Drug Administration (FDA) approved Vraylar (an antipsychotic treatment) in December. Despite concerns around Humira’s loss of patent protection, we believe AbbVie has significantly diversified its revenue and that its launch of Rinvog for psoriatic arthritis and atopic dermatitis could be promising.”