5 Best Penny Stocks To Buy According To Hedge Funds

2. Verastem, Inc. (NASDAQ:VSTM)

Number of Hedge Fund Holders: 21  

Verastem, Inc. (NASDAQ:VSTM) is another biotech penny stock that hedge funds love. It is ranked second on our list of 11 best penny stocks to buy according to hedge funds. The firm recently announced that it would be partnering with Amgen to evaluate the safety of a new drug for cancer patients. The share of the firm jumped more than 22% after the announcement. In the second quarter, the company beat market expectations on revenue by close to $0.5 million. Alliance Global Partners has a Buy rating on the stock with a $6 price target. 

Investment advisory BTIG also has a Buy rating on Verastem, Inc. (NASDAQ:VSTM) stock with a $8 price target. Analyst Robert Hazlett is covering the firm. It has a market cap of close to $500 million. 

At the end of the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $241 million in Verastem, Inc. (NASDAQ:VSTM), up from 12 in the preceding quarter worth $129 million.

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Baker Bros. Advisors is a leading shareholder in Verastem, Inc. (NASDAQ:VSTM) with 21 million shares worth more than $87 million.