Hedge Funds Were Right About These 5 Small-Cap Stocks

4. Chinook Therapeutics Inc. (NASDAQ:KDNY)

Market Cap (As of August 17): $1.37B

Number of Hedge Fund Holdings: 24

YTD Gains (As of August 17): 30.92%

Headquartered in Seattle, Washington, Chinook Therapeutics Inc. (NASDAQ:KDNY) is an American, clinical-stage, biotechnology company which specializes in the development of precision medications for diseases affecting the kidney. Investor interest in Chinook Therapeutics Inc. (NASDAQ:KDNY) has taken a slight dip in the first quarter of 2022, with 24 hedge funds having a stake value of $394.1 million, compared to 25 funds having a collective stake of $424.7 million in the preceding quarter. Overall, market sentiment around Chinook Therapeutics Inc. (NASDAQ:KDNY) has been high, with the company receiving a Bullish rating  on Investors Observer‘s Stock Sentiment Indicator.

Chinook Therapeutics’ (NASDAQ:KDNY) share price hit a 52-week high on August 16 as HC Wainwright raised the price target on the stock to $32 from $28, maintaining a Buy rating on the stock. Chinook Therapeutics traded as high as $21.37 and last traded at $21.21, with a volume of 520 shares, as of August 16. Of the 9 Wall Street analysts who reviewed Chinook Therapeutics Inc. (NASDAQ:KDNY) since May, 8 have conferred a Strong Buy rating on the stock. According to analysts, Chinook’s (NASDAQ:KDNY) lead programs Atrasentan and BION-1301 represent compelling assets. Furthermore, Stifel analyst Alex Thompson, who initiated coverage of Chinook Therapeutics Inc. (NASDAQ:KDNY) on July 27 with a Buy rating and a $30 price target, wrote in a research note that the company is well capitalized to comfortably get through catalysts in 2023.