14 Worst 52-Week High Stocks to Buy According to Short Sellers

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1. TG Therapeutics Inc (NASDAQ:TGTX)

52 Week Range: $6.46 – $26.41

Current Share Price: $25.25

Short % of Shares Outstanding: 19.06%

Number of Hedge Funds holding stakes as of Q2 2024: 38

TG Therapeutics Inc (NASDAQ:TGTX) is a biopharmaceutical company that engages in the acquisition, development, and commercialization of treatments. Its primary treatment option is BRIUMVI for the treatment of multiple sclerosis.

While the stock is trading near its 52-week highs, the rally has resulted in the company delivering positive clinical trial and financial results. Likewise, the company has benefited from strategic partnerships and a strong pipeline of promising therapies.

Nevertheless, the short interest rate on the company’s outstanding shares stands at a whopping 19.06%, affirming why it is one of the worst 52-week high stocks to buy, according to short sellers. The high short interest stems from growing concerns about the company’s dependence on its one drug for multiple sclerosis. The drug losing its patent and facing competition from other drugs could spell more trouble for the company’s core revenue base.

Sales for Briumvi have been increasing in recent years, helping propel TG Therapeutics Inc (NASDAQ:TGTX) to its first-ever quarterly profit. The company delivered solid financial results for its second quarter of 2024, with the sales of its leading drug, BRIUMVI, exceeding forecasts by $72.6 million. This strong performance has prompted the company to increase its annual revenue forecast from $290 million to $300 million.

Following the impressive second-quarter results, TG Therapeutics Inc (NASDAQ:TGTX) has sought to strengthen its prospects in the industry by implementing a share repurchase program. Nevertheless, the stock is trading at a premium with a price-to-earnings multiple of 42, considering the average P/E for healthcare stocks is 34.

At the end of June, there were 38 funds in our database long TG Therapeutics Inc (NASDAQ:TGTX), up from 29 in the previous quarter. Guy Levy Soleus Capital was the biggest stakeholder of the company, which disclosed ownership of 3.64 million shares in its latest 13F filing.

While we acknowledge the potential of TGTX to grow, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGTX, check out our report about the cheapest AI stock.

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