5 Pharmaceutical Stocks to Buy According to Lawrence Hawkins’ Prosight Capital

2. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

Prosight Capital Stake Value: $9 million

Percentage of Prosight Capital’s 13F Portfolio: 5.84%

No. of Hedge Fund Holders: 34

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), headquartered in San Diego, California, is a biopharmaceutical company with a market cap of $3.6 billion. The firm provides transformational medications with improved pharmacology and pharmacokinetics. In the second quarter of 2021, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) reported an EPS of -$2.40, missing estimates by $0.22.

According to latest security filings, Hawkins’ Prosight Capital increased stake in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) by 30% during the second quarter of 2021 compared to the first quarter. The company represents 5.84% of the total investment portfolio of the hedge fund at the end of the second quarter of 2021. Our data shows that VenBio Select Advisor is one of the biggest stakeholders in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) with 4 million shares worth $277.9 million.

On August 10, investment advisory Cantor Fitzgerald lowered its price target on Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) to $93 from $100, keeping an Overweight rating on the shares. Alethia Young, an analyst at the firm, added that she anticipates many catalysts in the pipeline over the next 12-18 months that could propel the stock far higher from present levels.

At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $756.6 million in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), up from 33 the preceding quarter worth $822.6 million.