15 Worst 52-Week Low Stocks to Buy Now According to Short Sellers

10. Sage Therapeutics, Inc. (NASDAQ:SAGE)

52 Week Range: $7.19 – $28.26

Current Share Price: $7.90

Short % of Shares Outstanding: 10.18%

Number of Hedge Funds holding stakes as of Q2 2024: 31

Sage Therapeutics, Inc. (NASDAQ:SAGE) is a healthcare company that engages in the development and commercialization of brain health medicines. Its product candidates include ZULRESSO, a CIV injection for the treatment of postpartum depression (PPD) in adults, and ZURZUVAE, a neuroactive steroid.

Shares of Sage Therapeutics, Inc. (NASDAQ:SAGE) have plummeted to 52-week lows after the company suffered a major blow on one of its clinical trials. The company’s candidate drug, SAGE 324, failed to ease involuntary shaking in patients in a mid-stage trial.

The disappointing trial results rattled the investment community that was excited about a potential blockbuster depression treatment. Consequently, short interest on the stock has spiked to 10.18%.

In addition to disappointing clinical trial results, Sage Therapeutics, Inc. (NASDAQ:SAGE) sentiments have also taken a significant hit following disappointing second-quarter results. The company delivered a net loss of $102.9 million as sales for its flagship drug, Zurzuvae, increased 67% but fell short of Wall Street expectations.

31 out of the 912 hedge funds part of Insider Monkey’s Q2 2024 database had bought the firm’s shares. William Leland Edwards’ Palo Alto Investors owned the biggest Sage Therapeutics, Inc. (NASDAQ:SAGE) stake among these, which was worth $10.98 million.