5 Biotech Penny Stocks to Buy According to Reddit

2. Cerecor Inc. (NASDAQ: CERC)

Number of Hedge Fund Holders: 10   

Price as of August 6, 2021: $2.82 per share

Cerecor Inc. (NASDAQ: CERC) is a Maryland-based biopharmaceutical company that works on drugs for the treatment of rare and orphan diseases. It is placed second on our list of 10 biotech penny stocks to buy according to Reddit. In earnings results for the second quarter, posted on August 2, the firm reported earnings per share of -$0.18, beating market estimates by $0.01. The revenue over the period was $3.3 million, up 150% year-on-year. On July 26, the stock soared 23% on the back of positive results from a study into a drug for the treatment of Crohn’s disease. 

On June 4, investment advisory Cantor Fitzgerald assumed coverage of Cerecor Inc. (NASDAQ: CERC) stock with an Overweight rating and a price target of $7, underlining that the peak sales potential of the pipeline drugs for the firm were underappreciated. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Armistice Capital is a leading shareholder in Cerecor Inc. (NASDAQ: CERC) with 32 million shares worth more than $98 million.