Zogenix, Inc. (ZGNX) Still Has Upside Potential of 40% Says This Analyst

What does the smart money think about Zogenix, Inc. (NASDAQ:ZGNX)?

At the end of the first quarter, a total of 14 of the hedge funds tracked by Insider Monkey were long in this stock, compared to 11 from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.

According to hedge fund experts at Insider Monkey, Kevin Kotler‘s Broadfin Capital had the largest position in Zogenix, Inc. (NASDAQ:ZGNX), worth close to $14.7 million, comprising 1.1% of its total 13F portfolio. On Broadfin Capital’s heels is Sabby Capital, managed by Hal Mintz, which held an $11.5 million position; the fund had 0.5% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions encompass Julian Baker and Felix Baker’s Baker Bros. Advisors, and Israel Englander‘s Millennium Management.

Now, some big names were leading the bulls’ herd. Sabby Capital, as mentioned before, initiated the most outsized position in Zogenix, Inc. (NASDAQ:ZGNX) during the March quarter. The following funds were also among the new Zogenix investors during the first trimester: Nathan Fischel’s DAFNA Capital Management, Efrem Kamen’s Pura Vida Investments, and Paul Tudor Jones’ Tudor Investment Corp.

Considering that the new price target still offers an upside of 40% given the current trading levels, and the bullish signal from both the hedge funds and the insiders of the company, we believe that Zogenix, Inc. (NASDAQ:ZGNX) is still a buy despite its torrid run already this year.

Disclosure: None