10 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds

5. Immatics N.V. (NASDAQ:IMTX)

Number of Hedge Fund Holders: 32

Immatics N.V. (NASDAQ:IMTX) is a clinical-stage biopharmaceutical company focused on developing innovative cancer immunotherapies. At its core, the company specializes in discovering and developing novel T-cell receptor (TCR)-based therapies for cancer treatment.

Immatics N.V. (NASDAQ:IMTX) is advancing two types of therapies: Engineered Adoptive Cell Therapies (ACTengine) and antibody-like TCR Bispecifics (TCER), aimed at different stages of solid tumors. Its lead candidate, IMA203, has demonstrated promising clinical results, with a 55% overall response rate and a median response duration exceeding 13 months, indicating the potential for breakthrough treatments in melanoma and other solid cancers.

Immatics N.V. (NASDAQ:IMTX), one of the best small-cap biotech stocks with massive potential according to hedge funds, reported a significant increase in total revenue, which rose to $56.7 million in Q3 2024, up from $6.6 million in the same quarter last year. This surge was primarily driven by a one-time revenue from the IMA401 partnership termination by Bristol Myers Squibb YoY.

The total value of cash and cash equivalents, as well as other financial assets, increased from $476.8 million in the same quarter last year to $549.2 million in Q3 2024. The increase, which was primarily brought on by the January 2024 public offering, was somewhat mitigated by ongoing research and development activities. Following its $150 million initial public offering (IPO) in October 2024, Immatics N.V. (NASDAQ:IMTX) currently projects a financial runway until the second half of 2027.

As of Q3 2024, 32 hedge funds held stakes in the company as tracked by the Insider Monkey database. The largest stakeholder in the company was Perceptive Advisors with holdings worth $92.2 million. Street analysts hold a consensus Strong Buy rating on the stock, with an average target of $18.00. The high forecast is $19.00, and the low is $16.00, representing a 90.48% increase from the current price of $9.45.