In this piece we will take a look at the top five healthcare stocks to buy today according to Steven Cohen’s Point72 Asset Management. If you want to learn about Mr. Cohen, his firm and his other prominent healthcare stock picks, then head on over to 10 Healthcare Stocks to Buy Today According to Steven Cohen’s Point72 Asset Management.
5. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Point72 Asset Management’s Holdings: $103.6 million
Percentage of Point72 Asset Management’s Portfolio: 0.41%
Number of Hedge Fund Holders: 38
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a biopharmaceutical firm that develops drugs based on RNA technology that target a myriad of diseases. These include muscular dystrophy and other genetic diseases.
Point72 Asset Management owned 1.1 million Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares by the end of Q4 2021, a $103.6 million stake which represented 0.41% of its 13F investment portfolio. During the same time period, 38 out of the 924 13F-filing hedge funds tracked by Insider Monkey’s database also owned the company’s shares.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) earned $201 million in revenue and lost $0.77 in non-GAAP EPS for its fiscal fourth quarter, a strong set of results that beat Wall Street estimates for both metrics. Despite this, Barclays reduced its price target on the company’s shares to $104 from $125 in March 2022, nonetheless stating that the company’s drugs are on a strong developmental trajectory. Barclays also kept an ‘Overweight’ rating on the shares.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s largest investor in our database is Kurt Von Emster’s VenBio Select Advisor, which owns 3.1 million shares worth $281 million.
4. ICU Medical, Inc. (NASDAQ:ICUI)
Point72 Asset Management’s Holdings: $109 million
Percentage of Point72 Asset Management’s Portfolio: 0.43%
Number of Hedge Fund Holders: 32
ICU Medical, Inc. (NASDAQ:ICUI) is a medical device manufacturer whose products are used in several applications. These include critical care, hemodialysis, cardiovascular applications, intravenous therapy, drug infusion, and cardiac activity monitoring.
During its fiscal fourth quarter, ICU Medical, Inc. (NASDAQ:ICUI) pulled in $340 million in revenue and $1.82 in non-GAAP EPS, beating analyst estimates for both. Raymond James increased the its price target on the company’s shares to $286 from $220 in September 2021, outlining that the strong probability of a business deal going through will prove to be a positive catalyst for the company.
Mr. Cohen’s investment firm owned 460,921 ICU Medical, Inc. (NASDAQ:ICUI) shares at the end of 2021’s final quarter. These were worth $109 million on December 31 and represented 0.43% of its 13F investment portfolio. 31 other hedge funds owned the company’s shares during the same time period, with Seth Rosen’s Nitorum Capital being ICU Medical, Inc. (NASDAQ:ICUI)’s largest investor among that group after Point72 Asset Management. Nitorum Capital owned a $59 million stake as of December 31 that consisted of 251,126 shares.
3. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Point72 Asset Management’s Holdings: $122 million
Percentage of Point72 Asset Management’s Portfolio: 0.49%
Number of Hedge Fund Holders: 35
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is an Irish biopharmaceutical firm that develops several drugs to treat diseases in the United States and globally. These drugs cover sleep disorders, cancer, leukemia, liver diseases, and post traumatic stress disorder.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) raked in $896 million in revenue and $4.21 in non-GAAP EPS for its fiscal Q4, beating analyst estimates for both. 35 hedge funds owned a stake in the company as of December 31, with Jazz Pharmaceuticals plc (NASDAQ:JAZZ)’s largest investor among them being Jim Simons’ Renaissance Technologies, which owned 1.7 million shares worth $216 million.
Point72 Asset Management’s stake in Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was worth $122 million by the end of December 2021, as the firm owned 963,824 shares. H.C. Wainwright raised its price target on JAZZ to $215 from $210 in March 2022, believing that the company’s strong quarterly results will carry forward throughout 2022.
2. Krystal Biotech, Inc. (NASDAQ:KRYS)
Point72 Asset Management’s Holdings: $129 million
Percentage of Point72 Asset Management’s Portfolio: 0.51%
Number of Hedge Fund Holders: 14
Krystal Biotech, Inc. (NASDAQ:KRYS) is a gene therapy provider headquartered in Pittsburg, Pennsylvania. The company’s products target several kinds of skin diseases, such as rare kinds of blisters, skin colored scales, and other rare but serious disorders.
By the end of the fourth quarter of last year, Mr. Cohen’s investment firm owned 1.8 million Krystal Biotech, Inc. (NASDAQ:KRYS) shares which were worth $129 million and represented 0.51% of its 13F investment portfolio. Insider Monkey scanned the portfolios of 924 13F-filing hedge funds in our database and found that 14 were investors of the firm. Jeremy Green’s Redmile Group is one of Krystal Biotech, Inc. (NASDAQ:KRYS)’s largest investors, owning 1.8 million shares that represent a $127 million stake as of December 31.
Krystal Biotech, Inc. (NASDAQ:KRYS) posted a loss of $3.13 in GAAP EPS for its fiscal fourth quarter, significantly missing analyst estimates. However, during the same time period, the company also significantly grew its cash and other investments, which stood at $502.5 million. These reflected the proceeds from the public offerings of its shares.
1. Biogen Inc. (NASDAQ:BIIB)
Point72 Asset Management’s Holdings: $146 million
Percentage of Point72 Asset Management’s Portfolio: 0.58%
Number of Hedge Fund Holders: 64
Biogen Inc. (NASDAQ:BIIB) is a healthcare company that develops and sells treatments for neurological and neurodegenerative diseases. These diseases include muscular atrophy, Alzheimer’s disease, multiple sclerosis, lymphomas, leukemia, arthritis, dementia, and more.
For its fiscal Q4, Biogen Inc. (NASDAQ:BIIB) earned $2.7 billion in revenue and $3.39 in non-GAAP EPS, beating analyst estimates for both. The company shared key details for its new Alzheimer’s treatment in March 2022, which prompted RBC Capital to raise its price target to $248 from $227, stating that there is strong demand for its Alzheimer’s products in the medical community.
Point72 Asset Management’s stake in Biogen Inc. (NASDAQ:BIIB) was worth $146 million at the end of the fourth quarter of last year, as the firm owned 611,500 shares. 64 funds owned a stake in the company at the end of 2021, with Biogen Inc. (NASDAQ:BIIB)’s largest investor among that group being Jim Simons’ Renaissance Technologies, which owns 1.07 million shares worth $257 million.
Longleaf Partners Fund mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“Biogen (83%, 2.43%; 5%, 0.10%), a biotechnology company specializing in therapies for the treatment of neurological diseases, was a strong contributor before we exited the position in the first half. We began acquiring shares in January 2021, paying between 9- 11x FCF and a discount to our appraisal, even if the company’s promising drug pipeline turned out to be worth 0. After Biogen’s Alzheimer drug Aduhelm was approved in June, we quickly sold out after the stock’s price appreciated over 70% and briefly exceeded our appraisal of the value. We re-initiated a position in Biogen in December at a price below our original cost basis from January. The stock became very cheap once again after Aduhelm’s early sales disappointed due to its high initial cost before management correctly cut the price. We think Biogen’s core Multiple sclerosis (MS) and Biosimilars businesses are strong enough to create sustainable double-digit EPS growth, even if Aduhelm and the entire Alzheimer’s program is worth zero. We also expect a board led by large shareholders to continue the company’s accretive repurchase, while considering other beneficial corporate actions.”
Disclosure: None. You can also take a look at 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins and 12 Best Large-cap Biotech Stocks To Buy Now.
