In this article, we’ll take a closer look at top 5 stocks activist investors are targeting. For a more comprehensive list, take a look at top 10 stocks activist investors are targeting.
5. Dice Therapeutics Inc (NASDAQ:DICE)
Next in line in our list of top 10 stocks activist investors are targeting is another healthcare company in which RA Capital increased its position. Peter Kolchinsky’s fund added 811,700 shares to its position in Dice Therapeutics Inc (NASDAQ:DICE) bringing it to a total of 7.66 million shares, which represent 16.05% of the outstanding stock.
Dice Therapeutics Inc (NASDAQ:DICE) is a clinical-stage biopharmaceutical company that focuses on oral treatments for chronic autoimmune and inflammatory diseases. Its lead candidate is a product for the treatment of psoriasis and in October the company reported positive Phase 1 trial results, with a reduction in Psoriasis Area and Severity Index of more than 47% in the high dose group compared to 13% in the placebo group. On the back of the positive trial data, the company’s stock more than doubled but has lost some of the gains since then.
Most analysts have a positive outlook on Dice Therapeutics Inc (NASDAQ:DICE) stock. For example, Needham & Company initiated coverage on the stock at the end of March, assigning a Buy rating and $56 price target. In its latest quarterly results, the company reported a net loss of $0.51 per share and more than $574 million in cash, cash equivalents and marketable securities, which should be enough to fund the company’s operations for the near future.
4. Gracell Biotechnologies Inc (NASDAQ:GRCL)
Healthcare-focused investor Samuel Isaly’s Orbimed Advisors has recently boosted its stake in Gracell Biotechnologies Inc (NASDAQ:GRCL) by 27% to 7.58 million shares. The holding gives Orbimed ownership of 11.2% of the company’s outstanding stock. The increase in the bullish sentiment comes after in February Gracell Biotechnologies Inc (NASDAQ:GRCL), a clinical-stage company engaged in developing cell therapies for the treatment of cancer, announced that the US Food & Drug Administration approved its Investigational New Drug Application of its CAR-T therapeutic candidate for the treatment of relapsed multiple myeloma. The company added that the approval allows it to proceed with Phase 1b/2 clinical trial, which is expected to commence in the second quarter of 2023.
In its last quarterly results, Gracell Biotechnologies Inc (NASDAQ:GRCL) posted a net loss of $0.06 per share, beating the estimates. The company also said it had more than $210 million in cash, cash equivalents and short-term investments at the end of 2022.
There were just eight funds tracked by Insider Monkey long Gracell Biotechnologies Inc (NASDAQ:GRCL) at the end of the last year, unchanged over the quarter.
3. Greenbrook TMS Inc (NASDAQ:GBNH)
Greenbrook TMS Inc (NASDAQ:GBNH) is a small ($31 million market cap) healthcare company that provides Transcranial Magnetic Stimulation (TMS) therapy for the treatment of mental disorders including Major Depressive Disorder. In a recent 13D filing, Madryn Asset Management reported raising its stake in the company to 21.2% from the previous holding of 8.21%. The new position comprises 9.28 million shares and positions Madryn among the company’s largest shareholders. According to the filing, Madryn acquired the shares following a private placement. In addition, in 2022, Madryn and Greenbrook TMS Inc (NASDAQ:GBNH) entered into a credit agreement worth $75 million that was extended by several additional tranches earlier this year.
Greenbrook TMS Inc (NASDAQ:GBNH) lost more than 66% since the beginning of the year even though it had a 150% bounce between March 23 and March 30. At the end of March, the company announced a delay in filing its annual report for the last year as it is seeking additional information and analysis related to some potential non-cash impairment charges related to some non-financial assets.
2. US Xpress Enterprises Inc (NYSE:USX)
Our top two picks in the list of top 5 stocks activist investors are targeting are new additions to funds’ portfolios. In US Xpress Enterprises Inc (NYSE:USX), Mario Gabelli’s GAMCO Investors reported ownership of 2.13 million shares, representing 5.89% of the company. Founded in 1986, US Xpress Enterprises Inc (NYSE:USX) provides truckload carrier services and freight brokerage services. GAMCO invested in US Xpress Enterprises as the company announced reaching an agreement to be acquired by Knight-Swift Transportation Holdings Inc (NYSE:KNX) for a total enterprise value of around $808 million. The stock nearly quadrupled on the back of the announcement made on March 21. Shareholders of US Xpress Enterprises Inc (NYSE:USX) are expected to receive $6.15 per share as part of the deal. The acquisition is subject to regulatory approval and approval of US Xpress Enterprises Inc (NYSE:USX).
1. Seadrill Ltd (NYSE:SDRL)
Last but not least, in offshore rig contractor Seadrill Ltd (NYSE:SDRL), Paul Singer’s Elliott Management reported a new stake containing 7.41 million shares equal to 14.83% of the outstanding stock. The position was not acquired through purchasing of stock, but Elliott obtained the shares as Seadrill Ltd (NYSE:SDRL) completed the merger with Aquadrill. Aquadrill was formerly known as Seadrill Partners and was an asset-holding unit of Seadrill Ltd (NYSE:SDRL). The company emerged from bankruptcy protection and changed its name to Aquadrill in 2021.
For the last year, Seadrill Ltd (NYSE:SDRL) reported revenue of $1.1 billion, in line with its previous forecasts, while its EBITDA of $265 million was at the top end of its guidance.
There were 10 funds in our database that held in aggregate $315.40 million worth of Seadrill Ltd (NYSE:SDRL) stock at the end of 2022.
