In this article, we discuss the 10 pharmaceutical stocks to buy under $20 according to Jeremy Green’s Redmile Group portfolio based on Q3 holdings of the fund. If you want to skip our detailed analysis of Green’s history, investment philosophy, and hedge fund performance, go directly to the 5 Pharmaceutical Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group.
Jeremy Green has more than 20 years of expertise in wealth management and investment banking. He worked as an analyst at SBC Warburg. He also served as the Managing Director at Salamon Smith Barney and Steeple Capital, and as a Director at One Medical Group.
Redmile Group, founded by Jeremy Green in March 2007, is a San Francisco-based alternative asset hedge fund. The hedge fund offers portfolio management and advisory services for hedge fund and private equity investments, concentrating on healthcare firms in both sectors. The hedge fund also manages independently managed accounts as an investment manager.
As of the third quarter of 2021, Redmile Group has stakes in several companies, including argenx SE (NASDAQ:ARGX), Genmab A/S (NASDAQ:GMAB), and Anthem, Inc. (NYSE:ANTM).
In argenx SE (NASDAQ:ARGX), Jeremy Green owns 730,582 shares. The investment covers an impressive 3.84% of the fund’s portfolio. In October, Guggenheim analyst Yatin Suneja upgraded Argenx to “Buy” from “Neutral” and gave a price target of $330.
Jeremy Green’s Redmile Group also owns 1.12 million shares of international biotechnology company Genmab A/S (NASDAQ:GMAB). In September, Jefferies analyst Peter Welford downgraded Genmab to “Hold” from “Buy” with a price target of $48, up from $45.50.
Jeremy Green is also bullish on Anthem, Inc. (NYSE:ANTM), according to his hedge fund’s disclosed holdings data as of the third quarter of 2021. Redmile Group increased its holding in the company by 18% in the third quarter, ending the period with 127,502 shares. Mizuho analyst Ann Hynes boosted her price objective on Anthem to $450 from $385 in October and rated the stock as “Neutral.”
In this article, our focus would be on some of the pharmaceutical stocks under $20 in Green’s Q3 portfolio.
With this background in mind, let’s start our list of 10 pharmaceutical stocks to buy under $20 according to Jeremy Green’s Redmile Group portfolio. We used Green’s 13F portfolio for Q3 2021 for this analysis.
Photo by National Cancer Institute on Unsplash
Pharmaceutical Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group
10. Invitae Corporation (NYSE:NVTA)
Redmile Group Stake Value: $151,176,000
Percentage of Redmile Group’s 13F Portfolio: 2.63%
Number of Hedge Fund Holders: 24
Price per Share as of Nov. 23, 2021: $18.35
Invitae Corporation (NYSE:NVTA) is a medical genetics firm that uses genetic data in healthcare. In third-quarter of 2021, the company posted revenue of $114.4 million, representing a 66.4% increase YoY.
In November, Wells Fargo analyst Dan Leonard lowered his price target on Invitae to $25 from $35. The analyst gave the stock “Equal Weight” rating due to his skepticism that the company’s performance in genetic testing—an extensive menu, inexpensive pricing—will effectively migrate to other industries to generate stock upside from current levels.
Out of the hedge funds being tracked by Insider Monkey, Catherine D. Wood’s ARK Investment Management is a leading shareholder in Invitae Corporation with 25.92 million shares worth more than $736.85 million.
argenx SE (NASDAQ:ARGX), Genmab A/S (NASDAQ:GMAB), and Anthem, Inc. (NYSE:ANTM) are some of the pharmaceutical stocks attracting the attention of Jeremy Green’s Redmile Group, just like Invitae Corporation (NYSE:NVTA).
9. Atara Biotherapeutics, Inc. (NASDAQ:ATRA)
Redmile Group Stake Value: $115,746,000
Percentage of Redmile Group’s 13F Portfolio: 2.01%
Number of Hedge Fund Holders: 17
Price per Share as of Nov. 23, 2021: $18.19
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) is a biotechnology firm focused on developing revolutionary medicines for autoimmune illnesses, solid tumors, and cancer patients. The stock has delivered a 27.34% return in the last six months.
In October, Stifel analyst Benjamin Burnett lowered his price target on Atara Biotherapeutics to $27 from $30 and rated the stock as “Buy.” In a research note to investors, Burnett writes that the agreement with Pierre Fabre to commercialize tab-cel in a few non-US markets is favorable but not enough to change his mind.
As of Q3 2021, 17 hedge funds tracked by Insider Monkey have positions in Atara Biotherapeutics, Inc., down from 20 in the previous quarter. The total value of these stakes is $ 561.04 million.
8. Pliant Therapeutics, Inc. (NASDAQ:PLRX)
Redmile Group Stake Value: $52,049,000
Percentage of Redmile Group’s 13F Portfolio: 0.9%
Number of Hedge Fund Holders: 10
Price per Share as of Nov. 23, 2021: $14.82
Pliant Therapeutics, Inc. (NASDAQ:PLRX) is a company that focuses on the development and commercialization of new fibrotic illness medicines. In November, H.C. Wainwright analyst Ed Arce initiated coverage of Pliant Therapeutics, rating the stock as “Buy” and gave a price target of $45.
Redmile Group holds 3.08 million shares in the company, worth over $52.05 million, representing 0.9% of their portfolio. The third quarter of 2021 earnings report for Pliant Therapeutics, Inc. missed the analysts’ expectations. Earnings per share came in at -$0.75 below the estimates by $0.06. In addition, revenue was $1.61 million over the period, missing the analysts’ expectations by $0.29 million.
7. Annexon, Inc. (NASDAQ:ANNX)
Redmile Group Stake Value: $62,328,000
Percentage of Redmile Group’s 13F Portfolio: 1.08%
Number of Hedge Fund Holders: 12
Price per Share as of Nov. 23, 2021: $13.50
Annexon, Inc. (NASDAQ:ANNX) is a clinical-stage biopharmaceutical business focused on developing innovative therapeutics for patients suffering from classical complement-mediated diseases of the body, eye, and brain.
In September, Cantor Fitzgerald analyst Pete Stavropoulos initiated coverage of Annexon with an “Overweight” rating and gave a price target of $40. However, the company’s third-quarter EPS came in at -$0.93, missing the estimates by $0.06.
During the third quarter of 2021, Jeremy Green’s Redmile Group held 3.35 million shares of Annexon, Inc. in a stake that equaled $62.33 million and represented 1.08% of the overall portfolio. Simultaneously, 12 of the 867 hedge funds polled by Insider Monkey had holdings in the company worth $178.85 million.
6. SomaLogic, Inc. (NASDAQ:SLGC)
Redmile Group Stake Value: $49,216,000
Percentage of Redmile Group’s 13F Portfolio: 0.85%
Number of Hedge Fund Holders: 37
Price per Share as of Nov. 23, 2021: $12.05
SomaLogic, Inc. (NASDAQ:SLGC) is a protein biomarker research and clinical diagnostics firm.
SomaLogic, Inc. (NASDAQ:SLGC) formed a strategic agreement with University Hospitals Cleveland Medical Center in November to assess the impact of the company’s SomaSignal tests on the medical care of diabetic patients at high risk of cardiovascular disease. In the third quarter of 2021, SomaLogic, Inc. (NASDAQ:SLGC) posted revenue of $19.99 million, up 40.5% Y/Y.
SomaLogic, Inc. is the latest addition in Jeremy Green’s Redmile Group portfolio, as the hedge fund bought 3.97 million shares of the company, worth $49.22 million. In the third quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $647.59 million in the company.
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Disclosure: None. 10 Pharmaceutical Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group is originally published on Insider Monkey.
