10 Best Multibagger Penny Stocks of 2025

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

Share Price as of August 29: $4.7

Average Upside Potential as of August 29: 152.6%

Number of Hedge Fund Holders: 27

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is another biotech company on our list. It focuses on the development and commercialization of gastrointestinal products and is based in Boston, Massachusetts.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is making great progress in growing its business. In 2023, the company announced an agreement to acquire another clinical-stage biotech company, VectivBio Holding. The acquisition is one that bolsters Ironwood Pharmaceuticals, Inc.’s (NASDAQ:IRWD) position in the biotech area as a gastrointestinal specialist, as it adds the drug apraglutide to its portfolio, which only consisted of Linzess before.

Linzess has also been very beneficial for Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD). Prescription demand for this treatment increased by 11% in the second quarter, which marks the sixth consecutive quarter of double-digit growth. The company also generated $33 million in operating cash flow in the second quarter. In Ironwood Pharmaceuticals, Inc.’s (NASDAQ:IRWD) second-quarter earnings call, company management also noted that apraglitude has an exciting future with the company and represents a lucrative market opportunity, which is ensuring that Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is poised for sustainable and immense growth moving forward.

In total, 27 hedge funds were long Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) in the second quarter, with a total stake value of $317.1 million. Sarissa Capital Management was the largest shareholder, holding 16,390,000 shares.