10 DNA Stocks Billionaires Are Loading Up On
In this article, we discuss 10 DNA stocks that billionaires love. If you want to skip our detailed analysis of the DNA market, head over to 5 DNA Stocks Billionaires Are Loading Up On.
Genomics is the study of a complete set of DNA within an organism. The global genomics market was worth $28.39 billion in 2022, and it is expected to reach $98.7 billion by 2030, exhibiting a compound annual growth rate of 16.85% during the forecast period from 2022 to 2030. The growth in the global genomics market will primarily be driven by greater strides in gene targeted therapy and precision medicine. In addition to that, higher government subsidies and funding in the microbiology and genetics sector will also support growth. The cost of sequencing human genomes at present is below $1,000, which is remarkably less than a decade ago. This cost was estimated to be $1 million in 2007. This has now led to new market entrants and startups in the genomics space, propelling further innovation and growth. The amalgamation of genomics with artificial intelligence and machine learning is projected to fasten discoveries in the sector.
The field of genomics is gaining traction all over the world. For example, India’s most famous billionaire and business magnate, Mukesh Ambani, is foraying into genetic mapping. Ambani plans to make genetic mapping more affordable and mainstream it throughout India’s rapidly growing consumer landscape. He took inspiration from American startups like 23andMe Holding Co. (NASDAQ:ME). Ambani’s goal is to make a genome sequencing test available for $145 in India. This test will be 86% less expensive as compared to the other alternatives locally available in India. The genome sequencing test indicates an individual’s inclination towards cancer, cardiovascular diseases, and neurodegenerative disorders, in addition to hereditary genetic ailments.
Don't Miss: 12 Gene Editing Stocks With the Best Long-Term Potential
Anne Wojcicki, the co-founder and CEO of 23andMe Holding Co. (NASDAQ:ME), was in conversation with Fortune on April 25, 2023. She pointed out a recent study by The Lancet, a peer-reviewed medical journal, which indicated that negative reactions to medications can be cut by 30% if only medications were genetically tailored to the patients. Wojcicki also noted that millions of individuals have bought and performed DNA tests, which confirms robust consumer demand. 23andMe Holding Co. (NASDAQ:ME), along with Medscape, performed a survey which concluded that two-thirds of doctors are of the opinion that genetic testing could result in improved outcomes for patients, and more than 90% of the respondents agreed that genetic testing is a crucial component in understanding one's health status completely.
The genomics market is rapidly growing and that leads to several attractive buying opportunities. Billionaires, never backing down from potentially profitable opportunities, are loading up on DNA stocks like Illumina, Inc. (NASDAQ:ILMN), Invitae Corporation (NYSE:NVTA), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) to benefit from the boom in the genomics industry. Investors can also check out 11 Most Promising Gene Editing Stocks and 12 Biggest Genomics Companies in the World.
Our Methodology
Insider Monkey tracks billionaire-owned stocks and in this article, we selected the DNA stocks that attracted the highest number of billionaire investors during the first quarter of 2023. We have also mentioned the overall hedge fund sentiment towards each stock as of Q1 2023.
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DNA Stocks Billionaires Are Loading Up On
10. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 22
Number of Billionaire Investors: 5
CRISPR Therapeutics AG (NASDAQ:CRSP) is Switzerland-based a gene editing company that specializes in developing gene-based medicines using its CRISPR and Cas9 platform. On May 8, CRISPR Therapeutics AG (NASDAQ:CRSP) reported a Q1 GAAP EPS of -$0.67 and a revenue of $100 million, outperforming Wall Street estimates by $0.97 and $75.67 million, respectively.
On June 9, JMP Securities analyst Silvan Tuerkcan raised the firm's price target on CRISPR Therapeutics AG (NASDAQ:CRSP) to $74 from $70 and maintained an Outperform rating on the shares. CRISPR and Vertex Pharmaceuticals announced that the exagamglogene autotemcel BLA was recognized by the FDA, indicating a significant milestone ahead of potential approvals, the analyst told investors in a research note. The firm believes CRISPR and Vertex have the power to create a monopoly in sickle cell disease and transfusion-dependent beta thalassemia and generate substantial sales.
According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on CRISPR Therapeutics AG (NASDAQ:CRSP). The firm also was on the radar of 5 billionaire investors as of the end of March 2023, including Ken Griffin of Citadel Investment Group.
Like Illumina, Inc. (NASDAQ:ILMN), Invitae Corporation (NYSE:NVTA), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), CRISPR Therapeutics AG (NASDAQ:CRSP) is one of the best DNA stocks to invest in.
9. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 29
Number of Billionaire Investors: 7
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a genome editing company engaged in the development of curative therapeutics. On May 4, the company reported a Q1 GAAP EPS of -$1.17 and a revenue of $12.6 million, outperforming Wall Street estimates by $0.21 and $0.84 million, respectively. Cash, cash equivalents, and marketable securities came in at $1.2 billion as of March 31, 2023, compared to $1.3 billion the prior quarter. It is one of the best DNA stocks to invest in.
On June 13, BofA analyst Greg Harrison lifted the price target on Intellia Therapeutics, Inc. (NASDAQ:NTLA) to $91 from $89 and maintained a Buy rating on the shares after "an impressive update" from its phase 1 trial of NTLA-2002 in hereditary angioedema. In addition to progressively developing another business opportunity, the update offers "further validation to Intellia's gene editing platform," added the analyst.
According to Insider Monkey’s first quarter database, 29 hedge funds were bullish on Intellia Therapeutics, Inc. (NASDAQ:NTLA), compared to 39 funds in the prior quarter. Intellia Therapeutics, Inc. (NASDAQ:NTLA) was part of 7 billionaire portfolios in Q1, including Andreas Halvorsen’s of Viking Global.
Carillon Tower Advisers discussed its stance on Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter.
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
8. Fulgent Genetics, Inc. (NASDAQ:FLGT)
Number of Hedge Fund Holders: 14
Number of Billionaire Investors: 8
Fulgent Genetics, Inc. (NASDAQ:FLGT) provides clinical diagnostic solutions such as molecular diagnostic testing, genetic testing, and anatomic pathology laboratory tests and testing services. Fulgent Genetics, Inc. (NASDAQ:FLGT) is also involved in therapeutic development and has a targeted therapy platform. It is one of the best DNA stocks that billionaires are flocking towards. In Q1 2023, 8 billionaires were bullish on Fulgent Genetics, Inc. (NASDAQ:FLGT), including Cliff Asness of AQR Capital Management.
On May 8, Piper Sandler raised the firm's price target on Fulgent Genetics, Inc. (NASDAQ:FLGT) to $37 from $35 and maintained a Neutral rating on the shares following the company's Q1 earnings results.
According to Insider Monkey’s first quarter database, 14 hedge funds held stakes worth $37.7 million in Fulgent Genetics, Inc. (NASDAQ:FLGT), compared to 17 funds in the prior quarter worth $20 million.
Here is what Old West Investment Management has to say about Fulgent Genetics, Inc. (NASDAQ:FLGT) in its Q3 2021 investor letter:
“In our second quarter of 2020 letter, I wrote about a very promising holding of ours, Fulgent Genetics. Fulgent is a genetic testing and diagnostics company involved in one of the hottest fields in healthcare. At the time of that letter, the stock was trading at $20 per share, up from our original purchase price of $6.00. Today the stock is trading at $84, and we think it still has significant upside.
Fulgent is led by visionary entrepreneur Ming Hsieh, who previously founded Cogent, Inc in 1990 and sold the company to 3M for nearly $1 Billion. Fulgent’s genetic testing business has great potential, and they very opportunistically expanded into Covid testing in 2020. The company is growing rapidly, has a debt free balance sheet and is gushing cash flow. Although Covid testing has provided explosive growth for the company, they have not lost focus on genetic testing, having grown that portion 296% year-over-year…” (Click here to see the full text)
7. Editas Medicine, Inc. (NASDAQ:EDIT)
Number of Hedge Fund Holders: 16
Number of Billionaire Investors: 8
Editas Medicine, Inc. (NASDAQ:EDIT) is a clinical stage genome editing company that specializes in creating transformative genomic medicines by utilizing its proprietary CRISPR gene editing platform. Insider Monkey’s database tracked Editas Medicine, Inc. (NASDAQ:EDIT) in 8 billionaire portfolios at the end of March. It is one of the top DNA stocks to monitor.
On June 12, Raymond James upgraded Editas Medicine, Inc. (NASDAQ:EDIT) to Outperform from Market Perform with a $17 price target. The data update at EHA indicates that EDIT-301 is working soundly and is "an important de-risking dataset" as EDIT-301 utilizes a novel Cas enzyme and cuts a novel site, the analyst wrote in a note to investors. It "already looks like EDIT-301 has potential to be a 'functional cure,' like lovo-cel and exa-cel," and initial Hb signals point towards an exceptional data profile, the analyst added.
According to Insider Monkey’s first quarter database, 16 hedge funds were long Editas Medicine, Inc. (NASDAQ:EDIT), compared to 20 funds in the prior quarter. Billionaire David Shaw’s D E Shaw is a prominent stakeholder of the company.
6. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Number of Hedge Fund Holders: 32
Number of Billionaire Investors: 8
Pacific Biosciences of California, Inc. (NASDAQ:PACB) specializes in the design and production of sequencing systems to navigate advanced genetic challenges. The company offers sequencing systems, consumable products like SMRT cells, and reagent kits tailored for specific workflows, such as template preparation kits for converting DNA into SMRTbell double-stranded DNA library formats. In the first quarter of 2023, 8 billionaires held stakes in Pacific Biosciences of California, Inc. (NASDAQ:PACB), including Steve Cohen of Point72 Asset Management.
On May 2, Pacific Biosciences of California, Inc. (NASDAQ:PACB) reported a Q1 GAAP EPS of -$0.36, falling short of Wall Street estimates by $0.03. The revenue of $38.9 million increased 17.3% year-over-year, beating market consensus by $4.52 million.
According to Insider Monkey’s first quarter database, 32 hedge funds held stakes worth $744.4 million in Pacific Biosciences of California, Inc. (NASDAQ:PACB), compared to 25 funds in the prior quarter worth $383.5 million.
In addition to Illumina, Inc. (NASDAQ:ILMN), Invitae Corporation (NYSE:NVTA), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Pacific Biosciences of California, Inc. (NASDAQ:PACB) is one of the top DNA stocks preferred by billionaire investors.
Jackson Square Partners made the following comment about Pacific Biosciences of California, Inc. (NASDAQ:PACB) in its Q3 2022 investor letter:
“Pacific Biosciences of California, Inc. (NASDAQ:PACB): emerging player in genomic sequencing with its highly differentiated long-read technology; poised to unlock a multi-year share shift towards long-read sequencing as new products dramatically improve throughput and cost to competitively advantaged levels.”
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Disclosure: None. 10 DNA Stocks Billionaires Are Loading Up On is originally published on Insider Monkey.