Investing
Billionaire Sold Broadcom And Bought This Stock That Could Soar 121%
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Key Points
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At the end of 2024, the billionaire picked up 7,569,450 shares of TEVA, which increased the firm’s stake by 530%. It also made TEVA Duquesne’s fourth biggest holding.
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TEVA has 121% upside from its share price today.
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If you’re looking for solid opportunities, keep an eye on 13F filings.
Most times, they offer an under-the-hood look at which stocks some of the most successful asset managers and billionaires were buying and selling in the last quarter.
One of the big guys we’ve been paying attention to is billionaire Stanley Druckenmiller, the Duquesne Family Office’s chief. In the fourth quarter of 2024, we learned he sold 239,980 shares of Broadcom (NASDAQ:AVGO).
He was also a big seller of tech stocks overall in the final months of 2024.
Druckenmiller Did Increase His Stake in Teva Pharmaceuticals by 530%
One of his most recent standout buys was brand name and generic drug developer, Teva Pharmaceuticals (NYSE:TEVA). At the end of 2024, he picked up 7,569,450 shares of TEVA, which increased the firm’s stake by 530%. It also made TEVA Duquesne’s fourth biggest holding.
Granted, TEVA was a nightmare stock.
Between July 2015 to April 2025, the stock slipped from $65.81 to less than $8 a share. But that’ll happen when you get caught up in litigation over the opioid crisis. It also lost its sales exclusivity with its multiple sclerosis drug and had considerable debt on the books.
However, shares of TEVA are starting to come back strong.
After hitting a recent high of $22.17, it’s now back to $13.60 thanks to the market drop.
There’s Reason to Get Bullish on Teva Pharmaceuticals
For one, Druckenmiller just made TEVA the fourth biggest holding in the Duquesne portfolio. Two, it’s been able to put the opioid litigation in its rearview mirror, which was settled with 48 states for about $4.25 billion in 2022. That’s payable over 13 years so it won’t drain its cash.
Two, TEVA is inexpensive, trading at 5.24x earnings with a PEG ratio of just 0.82. It’s also trading at less than sales with a price-to-sales ratio of 0.93.
Three, Teva just reported positive Phase 2b trial data of its promising drug Duvakitug, which is being developed to treat ulcerative colitis and Crohn’s disease. Fourth, earnings have been solid. Its EPS of 71 cents beat by a penny. Revenue of $4.23 billion, down 5.2% year over year, beat expectations by $110 million.
We should also note the average TEVA price target among analysts is $23.86, which represents 75% potential upside. The high end of estimates is currently $30 a share, which represents potential upside of 121%.
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