Insider Monkey names 20 under-$20 biotech stocks popular with hedge funds

The global biotechnology market was valued at about $1.65 trillion in 2025 and is projected to grow to $5.22 trillion by 2034 at a compound annual growth rate of 13.67%, according to Straits Research. The U.S. market remains the largest globally: it was worth $552.39 billion in 2023 and is expected to reach $1.24 trillion by 2030. Insider Monkey has selected 20 biotech companies trading below $20 per share that are widely held by hedge funds.

Black Diamond Therapeutics (BDTX) develops MasterKey therapies targeting groups of oncogenic mutations across tumor types. In December 2025, the company released positive preliminary data from a mid-stage clinical trial of silevertinib for patients with non-small cell lung cancer with rare mutations. The stock is held by 18 hedge funds, according to Insider Monkey data (as of the end of the third quarter). Eight Wall Street analysts rate the shares “buy” or “overweight,” and one rates them “hold.” The average target price is $9.29 per share, implying more than triple upside versus the closing price on Thursday, February 5.

Altimmune (ALT) is a clinical-stage biopharmaceutical company developing peptide therapies for metabolic and liver diseases, including obesity. Its lead candidate, pemvidutide – a GLP-1/glucagon dual agonist – targets weight loss, liver fat reduction, and cardiometabolic risk. On January 27, Barclays initiated coverage with a “strong buy” rating and a $20 target price per share. The stock is held by 18 hedge funds. Eight analysts rate the shares “buy,” while one each rates them “hold” and “sell,” according to MarketWatch data. The average target price is $19.75 per share, implying over 500% upside.

ImmunityBio (IBRX) develops immunotherapies and vaccines to treat cancer and infectious diseases. Net sales of its ANKTIVA therapy in the U.S. rose nearly 700% year over year to $113 million in 2025 and are projected to reach $180 million in 2026. On January 23, the company released positive phase II data for QUILT-3.078 in recurrent glioblastoma. The stock is held by 18 hedge funds. Five analysts rate the shares “buy,” without differing recommendations. The average target price is $11.80 per share, implying roughly 110% upside.

Arcturus Therapeutics (ARCT) focuses on mRNA vaccines and RNA therapeutics targeting COVID-19, influenza, rare liver diseases, and respiratory disorders. Two mid-stage programs – an inhaled mRNA therapy for cystic fibrosis and a systemic mRNA therapy for a rare liver condition – are showing clinical activity with peak sales potential exceeding $1 billion each, according to Roth Capital. The stock is held by 18 hedge funds. Analysts give eight “buy” versus three “hold” ratings. The average target price is $33.56 per share, implying 379% upside.

Lexeo Therapeutics (LXEO) is a clinical-stage developer of genetic and RNA therapies targeting cardiovascular diseases. In January, the company presented preliminary results from a phase I/II trial of LX2020 for the rare arrhythmogenic cardiomyopathy. H.C. Wainwright has since lowered its target price to $10 from $13 per share while maintaining its “buy” rating. This reflects limited market conviction in early data. The stock is held by 21 hedge funds. Eleven analysts rate the shares “buy,” according to MarketWatch data. The average target price is $19.64 per share, implying about 185% upside.

4D Molecular Therapeutics (FDMT) develops targeted gene therapies using AAV vectors for retinal diseases, cystic fibrosis, and cardiomyopathy. In late January, Barclays initiated coverage with an “overweight” rating and a $33 per share target price. The stock is held by 21 hedge funds. Nine analysts rate it “buy,” and two “hold.” The average target price is $33.11 per share, implying about 294% upside.

Korro Bio (KRRO) develops RNA-editing therapies based on its proprietary platform to treat rare and common diseases. In late January, Piper Sandler upgraded the stock to “overweight” from “neutral,” raising the target price to $30 from $11 per share following progress with KRRO-121, a candidate for urea cycle disorders and hepatic encephalopathy, with human trials planned for the second half of 2026. The stock is held by 22 hedge funds. According to MarketWatch data, analysts are evenly split on the stock's prospects: five analysts rate the shares “buy” versus five who say “hold.” The average target price is still $22.38 per share, implying about 94% upside.

Relay Therapeutics (RLAY) is a clinical-stage biotechnology company using computational and experimental technologies to accelerate drug discovery. Its Dynamo platform targets difficult-to-drug proteins in oncology and genetic diseases. On January 26, Oppenheimer upgraded the stock to “outperform” and raised its target price 88% to $14 per share as Oppenheimer believes the upcoming VIKTORIA-1 readout for gedatolisib could benefit Relay’s mutant-selective inhibitor zovegalisib. The stock is held by 26 hedge funds. Twelve analysts rate the shares “buy.” The average target price is $14.55 per share, implying about 78.5% upside.

KalVista Pharmaceuticals (KALV) develops small-molecule protease inhibitors for rare diseases, including hereditary angioedema and diabetic macular edema. On January 29, TD Cowen raised its target price to $35 per share from $30 while maintaining a “buy” rating following preliminary fourth-quarter results. The stock is held by 27 hedge funds. All nine analysts covering the company rate the shares “buy,” according to MarketWatch data. The average target price is $33.78 per share, implying nearly 135% upside.

MiMedx Group (MDXG) develops and distributes placental tissue allografts for wound care, surgical, and burn applications. In late January, Craig-Hallum lowered its target price to $10 per share from $13 while maintaining a “buy” rating following Centers for Medicare and Medicaid Services guidance on provider billing and the withdrawal of the local coverage determination, which the firm expects to create provider confusion and pressure wound care volumes in the first quarter of 2026. The stock is held by 28 hedge funds. Five analysts rate the shares “buy.” The average target price is $10.40 per share, implying about 107% upside.

Legend Biotech (LEGN) develops and commercializes cell therapies, including CAR-T treatments for cancer in partnership with Johnson & Johnson. In January, H.C. Wainwright cut its target price to $50 per share from $60 while maintaining a “buy” rating after fourth-quarter results missed expectations. The stock is held by 28 hedge funds. Twenty analysts rate the shares “buy,” according to MarketWatch data. The average target price is $64.13 per share, implying 284% upside.

Ardelyx (ARDX) develops therapies for gastrointestinal and cardiorenal diseases. Its lead drug, Ibsrela, targets irritable bowel syndrome and chronic kidney-related conditions. Jefferies raised its target price to $15 per share from $8 while maintaining a “buy” rating, citing execution progress and sales potential of $1.5-2.0 billion by 2035. The stock is held by 30 hedge funds. All 13 analyst recommendations are “buy,” according to MarketWatch data. The average target price is $14.50 per share, implying more than double upside.

CytomX Therapeutics (CTMX), a clinical-stage biopharma company, develops oncology therapies using condition-activated antibody prodrugs. In late January, Barclays raised its target price to $8 per share from $6 while maintaining an “overweight” rating, citing near-term colorectal cancer readouts. The stock is held by 31 hedge funds. Eight analysts rate the shares “buy,” versus one who rates them “hold.” The average target price is $9 per share, implying about 72% upside.

Intellia Therapeutics (NTLA) is a clinical-stage biotech company specializing in genome editing and developing therapeutic drugs. In late January, H.C. Wainwright raised its target price on the stock to $25 per share from $15 while maintaining a “buy” rating after U.S. Food and Drug Administration lifted a clinical hold on Intellia’s MAGNITUDE-2 phase III trial for hereditary transthyretin amyloidosis with polyneuropathy (ATTRv-PN). The company’s shares are held by 31 hedge funds. According to MarketWatch data, Intellia has 11 “buy” recommendations, 12 “hold” recommendations, and two “sell” recommendations. The average target price is $23.70 per share, implying that the shares could more than double from current levels.

Taysha Gene Therapies (TSHA) develops gene therapies based on adeno-associated viruses to treat severe central nervous system disorders, including Rett syndrome. On January 5, Wells Fargo raised its target price to $11 per share from $8 while maintaining an “overweight” rating following progress in its key Rett syndrome program. The stock is held by 32 hedge funds. Fourteen analysts rate the shares “buy.” The average target price is $11 per share, implying nearly 150% upside.

Janux Therapeutics (JANX) develops immunotherapies designed to activate innate and adaptive immune responses to treat cancer. On January 22, the company announced a global licensing and collaboration agreement with Bristol Myers Squibb to develop a novel tumor-activated therapy for solid tumors. The stock is held by 32 hedge funds. Analysts give 18 “buy” and two “hold” ratings, according to MarketWatch data. The average target price is $60.83 per share, implying 400% upside.

Kura Oncology (KURA) focuses on targeted antitumor therapies and treatments for hematologic malignancies. The company reported that Komzifti (ziftenib) generated $2.1 million in net sales in the first five weeks after its commercial launch through December 31. Leerink Partners subsequently lowered its target price to $20 per share from $25 while maintaining an “outperform” rating. The stock is held by 34 hedge funds. Kura has 13 “buy” versus two “hold” recommendations, according to MarketWatch data. The average target price is $32.45, implying nearly 340% upside.

MoonLake Immunotherapeutics (MLTX) develops therapies targeting inflammatory diseases and is advancing sonelokimab, an investigational nanobody-based treatment. In early February, the FDA granted Fast Track designation to sonelokimab for palmoplantar pustulosis. H.C. Wainwright has since reiterated its “buy” rating and $32 per share target price. The stock is held by 35 hedge funds. Ten analysts rate the shares “buy,” three “hold,” and three “sell,” according to MarketWatch data. The average target price is $20.83, implying 41% upside.

Nurix Therapeutics (NRIX) focuses on the discovery, development, and commercialization of small-molecule drugs for cancer and immune diseases using its proprietary DELigase platform. Stifel analysts argue 2026 will be a key year for its drug bexobrutideg as the management advances two registrational studies and provides additional phase I updates. Stifel has raised its target price to $35 per share from $33 while maintaining a “buy” rating. The stock is held by 40 hedge funds. All 17 analyst recommendations are “buy,” according to MarketWatch data. The average target price is $30, implying 88% upside.

Amicus Therapeutics (FOLD) is a biotech developing and commercializing treatments for rare diseases such as Fabry disease. BioMarin has agreed to acquire the company for about $4.8 billion, or $14.50 per share, with the deal expected to close in the second quarter. Forty-five hedge funds hold the stock. All seven analyst recommendations are “hold,” according to MarketWatch data. The average target price is $14.5, implying 1.5% upside versus current levels.