Long-Term Returns of Dan Loeb’s 5 Activist Targets

In this article, we discuss long-term returns of Dan Loeb’s 5 activist targets. If you want to see more stocks in this selection, check out Long-Term Returns of Dan Loeb’s Activist Targets.

5. SentinelOne, Inc. (NYSE:S) 

Stock Return: -60%
Activist Investment: 2021

SentinelOne, Inc. (NYSE:S) is a cyber-security company that delivers artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across all endpoints.

Third Point LLC entered a 10.34% stake in the cyber security firm in June 2021

The investment came amid Loeb’s confidence about SentinelOne, Inc. (NYSE:S)’s growth potential and ability to disrupt the cyber security industry. Nevertheless, the investment has turned sour, with the stock declining by 60% over the past two years.

4. Cano Health, Inc. (NYSE:CANO)

Stock Return: – 76%
Activist Investment: 2022

Cano Health, Inc. (NYSE:CANO) specializes in offering primary care medical services to members in the United States and Puerto Rico. It operates senior care failures and primary care clinics in the US. In 2022, Third Point took a stake in the company urging the board to explore a sale, citing market dislikes of companies that went public via SPACs.

Activist investor Loeb had also raised concerns about Cano Health, Inc. (NYSE:CANO)’s executive compensation, financial discipline, investor communication, and board composition. Consequently, he proposed four directors’ nominees for election at an annual meeting.

Third Point liquidated all its holdings in the stock before year-end, having seen the value of its stake in the stock decline by more than 76%.

3. Bath & Body Works, Inc. (NYSE:BBWI)

Stock Return: 14.12%
Activist Investment: 2022

Bath & Body Works, Inc. (NYSE:BBWI) is a specialty home fragrance body care and soap retailer. Third Point LLC declared a 6.02% stake in the company in late 2022 as it also pushed for a refresh of the board and reduced management compensation in favor of shareholders’ returns.

In its 13D filing, Third Point questioned the adequacy of governance policies at the company while also criticizing excessive management compensation. Early 2023, Loeb sent a letter to the board affirming his plan to nominate a set of director candidates for election. He also urged the board to hire a permanent CEO with a proven track record.

Bath & Body Works, Inc. (NYSE:BBWI) price has increased by 14.12% since Loeb started waging a proxy battle with the company.

2. Ventyx Biosciences, Inc. (NASDAQ:VTYX) 

Stock Return: 66%
Activist Investment: 2022

Ventyx Biosciences, Inc. (NASDAQ:VTYX) is a clinical-stage biopharmaceutical company that develops small-molecule product candidates for various inflammatory diseases. In December of 2022, Third Point took a position on the company as Loeb remained optimistic about its pipeline and potential to create medicine for patients with autoimmune diseases.

Given that the hedge fund purchased the shares at an average price of about $18.95, the value of its stake has increased by about 66%.

1. Salesforce, Inc. (NYSE:CRM)

Stock Return: 25%
Activist Investment: 2023

Salesforce, Inc. (NYSE:CRM) is a company that provides cloud-based software and services for managing customer relationships, online commerce, data analysis, and social media. It was established in 1999 and is a leader in enterprise cloud computing. Third Point confirmed building a position in the company in early 2023

Loeb invested in Salesforce, Inc. (NYSE:CRM), believing that the stock was undervalued, given the strong market position and opportunities to improve profitability and capital structure. He is pushing for a say in the company’s strategic direction following the controversial acquisition of Slack. His investment in the company is already paying up, as it is up by 25%.

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