5 Cheap Pharmaceutical Stocks to Watch

2. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)

Number of Hedge Fund Holders: 28
Stock Price as of September 22: $12.67

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) stands second on our list of the cheap pharmaceutical stocks to watch. It is an American pharmaceutical company that manufactures medicines for patients suffering from gastrointestinal (GI) diseases.

On August 26, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) got approval from the FDA for its revised label for LINZESS (linaclotide) as the data signaled the clinical safety of the drug. The drug would be used to averse the risk of dehydration and contraindication in children. In Q2 2021, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) posted an EPS of $0.34, beating the estimates by $0.12. The company’s revenue for the quarter stood at $104.03 million, presenting a 16.3% year-over-year growth. For FY21, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) expects revenue in the range of $390 million to $410 million. In July, Morgan Stanley raised its price target on Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) to $12, while keeping an ‘Equal Weight’ rating on the shares. The stock gained 30.1% in the past year and 12.88% year to date.

In Q2 2021, 28 hedge funds tracked by Insider Monkey have positions in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), worth $498.4 million. The number of hedge funds having stakes in the company were the same in the previous quarter.