In this article, we will take a look at the 5 small-cap stocks with high potential. To read our analysis of the latest trends, and market activity, you can go to the 15 Small-Cap Stocks with High Potential.
5. Gossamer Bio, Inc. (NASDAQ:GOSS)
Number of Hedge Fund Holders: 33
Market Capitalization: $219 million
Gossamer Bio, Inc. (NASDAQ:GOSS) a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension.
On November 9, Gossamer Bio, Inc. (NASDAQ:GOSS) released its financial results and provided business update for Q3 2023. The phase 3 PROSERA site activations are proceeding ahead of schedule with first dosing expected in Q4 2023, according to the company. It had $329 million in cash, cash equivalents & marketable securities at the end of the quarter.
On December 19, Wedbush analyst Andreas Argyrides reiterated a ‘Buy’ rating for Gossamer Bio, Inc. (NASDAQ:GOSS) shares with an unchanged price target of $6 per share. The target price represents a potential upside of 518.56% based on the latest share price.
4. Immatics N.V. (NASDAQ:IMTX)
Number of Hedge Fund Holders: 33
Market Capitalization: $908 million
Tuebingen, Germany-based Immatics N.V. (NASDAQ:IMTX) is a clinical-stage biopharmaceutical company active in the discovery and development of T cell-redirecting cancer immunotherapies.
On September 11, Immatics N.V. (NASDAQ:IMTX) and Moderna, Inc. (NASDAQ:MRNA) announced a strategic research and development collaboration to develop breakthrough, mRNA-enabled in vivo expressed TCER® molecules.
As part of the agreement, Immatics N.V. (NASDAQ:IMTX) will receive an upfront payment of $120 million. The company will also receive research funding and is eligible to receive development, regulatory, and commercial milestone payments that could exceed $1.7 billion.
As of Q3 2023, Immatics N.V. (NASDAQ:IMTX) shares were held by 33 leading hedge funds tracked by Insider Monkey with the total shares held by hedge funds valued at $280 million. Baker Bros. Advisors was its leading hedge fund shareholder with ownership of 5.6 million shares valued at $65 million.
3. Travere Therapeutics, Inc. (NASDAQ:TVTX)
Number of Hedge Fund Holders: 37
Market Capitalization: $718 million
San Diego, California-based Travere Therapeutics, Inc. (NASDAQ:TVTX) is a biopharmaceutical company focused on developing therapies for rare diseases. It has two approved therapies: FILSPARI® (sparsentan) for adults with primary IgA nephropathy, and THIOLA EC® (tiopronin) to help prevent the formation of one type (cystine) of kidney stones.
On September 5, Travere Therapeutics, Inc. (NASDAQ:TVTX) completed the sale of its bile acid product portfolio that includes Cholbam and Chenodal to Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM). The company received $210 million at closing and is eligible for up to $235 million in potential sales-based milestone payments.
Travere Therapeutics, Inc. (NASDAQ:TVTX) ranks #3 on our list of 15 small-cap stocks with high potential based on the number of hedge funds holding its shares as of September 30, 2023. The shares of the company were owned by 37 hedge funds with a total value of $298 million.
2. Cogent Biosciences, Inc. (NASDAQ:COGT)
Number of Hedge Fund Holders: 38
Market Capitalization: $537 million
Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company focused on developing precision therapies for genetically defined diseases.
On December 11, Cogent Biosciences, Inc. (NASDAQ:COGT) reported positive data from Part 1 of the company’s ongoing Phase 2 APEX clinical trial evaluating bezuclastinib in patients with advanced systemic mastocytosis. The company is actively enrolling patients in Part 2 of the Phase 3 registration-enabling PEAK trial in Gastrointestinal Stromal Tumors (GIST).
Cogent Biosciences, Inc. (NASDAQ:COGT) shares were owned by 38 prominent hedge funds tracked by Insider Monkey with a total value of $379 million, as of Q3 2023.
1. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)
Number of Hedge Fund Holders: 39
Market Capitalization: $1.0 billion
Cambridge, Massachusetts-based Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is a global company committed to the mission of discovery and development of treatments for relentless and progressing neurodegenerative diseases.
On December 12, Deutsche Bank analyst Neena Bitritto-Garg initiated coverage of Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shares with a ‘Buy’ rating and a price target of $36 which represents a potential upside of 148.28% based on the share price on December 22.
As of Q3 2023, Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) ranks highest on our list of 15 small-cap stocks with high potential in terms of hedge fund sentiment. Its shares were held by 39 hedge funds with total value of $520 million. Andreas Halvorsen’s Viking Global held the most shares among hedge funds with ownership of 3.0 million shares valued at $54 million.
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