Hedge Funds Say These 5 Penny Stocks are Poised to Explode

2. Black Diamond Therapeutics, Inc. (NASDAQ:BDTX)

Share Price as of December 15: $2.58
Stock Price Upside Potential: 290%
Number of Hedge Fund Holders: 17

Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) is another clinical-stage company for anyone eyeing exposure to discovering and developing therapies for genetically defined cancers. BDTX-1535, the lead product of Black Diamond Therapeutics, Inc. (NASDAQ:BDTX), is an EGFR MasterKey inhibitor that can enter the brain, target specific mutations, and permanently block a group of cancer-causing changes.

Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) delivered a loss of $23 million in Q3, or 45 cents a share, beating the consensus estimate of 49 cents a share. The penny stock is again moving, going by the 50% gain year to date. Analysts on Wall Street expect the impressive rally to persist in 2024, going by a Buy rating and a $10.67 price target, implying 290% upside potential.

As of the end of the third quarter of 2023, 17 hedge funds tracked by Insider Monkey had stakes in Black Diamond Therapeutics, Inc. (NASDAQ:BDTX). The leading stakeholder of Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) during this period was Peter Kolchinsky’s RA Capital Management, with a stake worth about $10.12 million.

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