Institutional Investors Bet Big on Vaxcyte’s Clinical Ambitions

A surge of institutional investment is flowing into biopharmaceutical firm Vaxcyte Inc., aligning with a pivotal moment in its clinical development calendar. Major hedge funds significantly increased their stakes in the company during 2025, a move that underscores the growing confidence in its lead vaccine candidate as it enters a critical late-stage trial.

The conviction of professional money managers is evident in recent regulatory filings. In the second quarter of 2025, Maverick Capital boosted its holdings in Vaxcyte by a substantial 93.7%. This followed a first-quarter move by Eventide, which expanded its position by 22.6%. This aggressive accumulation of shares by sophisticated investors highlights a bullish outlook on the company's research pipeline.

The focus of this optimism is VAX-31, Vaxcyte's investigational broad-spectrum pneumococcal conjugate vaccine. The company initiated its key Phase 3 adult study, named OPUS, in December 2025. This trial is designed to demonstrate that VAX-31 is not inferior to established vaccines such as Prevnar 20.

Robust Cash Position Fuels Long Runway

Supporting its ambitious clinical plans, Vaxcyte maintains a strong balance sheet. As of the third quarter of 2025, the company reported $2.67 billion in cash and equivalents. This war chest is expected to fund operations through mid-2028, significantly reducing the near-term risk of shareholder dilution through equity raises.

Should investors sell immediately? Or is it worth buying Vaxcyte Inc?

The next major catalyst for the stock is anticipated in 2026, with the expected release of topline results from the ongoing OPUS study. Successful data would pave the way for a Biologics License Application (BLA) submission to U.S. regulators. The stock's trajectory in the coming years is likely to be heavily influenced by the progress and outcome of this clinical program.

Wall Street Sees Significant Upside

The analyst community reflects this positive sentiment. Vaxcyte currently holds a consensus rating of "Strong Buy." The average price target sits at $101.67, implying considerable upside from recent trading levels.

Some research firms project even greater gains. Following the launch of the adult Phase 3 trial, Jefferies recently reaffirmed a "Buy" rating and set a price target of $146.00. The underlying expectation is that VAX-31 could capture a meaningful share of the multi-billion dollar pneumococcal vaccine market, should it prove successful.