10 Cash-Rich Small Cap Stocks To Invest In According To Analysts

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1. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

TTM Operating Cash Flow as of December 31, 2024: $219,821,000

Number of Hedge Fund Holders: 26

Average Upside Potential: 58.58%

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a pharmaceutical company that develops and commercializes treatments for rare and other neurological disorders in the United States. On February 25, Mizuho Securities maintained its Outperform rating on the stock with a price target of $42. According to Mizuho, the company demonstrates strong financial stability with a 3.24 current ratio and 25.8% revenue growth over the past year.

In 2024, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) reported net product revenues of $714.7 million, showing a 23% increase from the previous year. Fourth quarter revenue came in at $201.3 million, driven by strong demand for WAKIX in narcolepsy treatment. With over $576 million in cash and cash equivalents, the company is well-positioned to invest in pipeline expansion and drive value for both patients and shareholders, making it one of the best cash rich stocks.

According to Insider Monkey’s fourth quarter database, 26 hedge funds were bullish on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY), compared to the preceding quarter when 25 funds had invested in the stock. David Kroin’s Deep Track Capital was the leading shareholder of the company, with 1.45 million shares worth approximately $50 million.

Overall, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) ranks first on our list of the best cash-rich small cap stocks to buy. While we acknowledge the potential of HRMY to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HRMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

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