CryoPort Inc (NASDAQ:CYRX) shares have sank almost 40% this morning after the company announced that it had priced a 5.5 million spot secondary run by Needham and Cowen at $2 per share. The underwriters have also been given the customary 30 day option to buy up to 825,000 more shares to cover any over-allotments. CryoPort Inc (NASDAQ:CYRX) plans to use the net proceeds of around $9.9 million, for business growth, working capital, and general corporate purposes.
Given that it’s a small stock with what used to be very small average volume, a big discount was needed to raise ~$10 million. Up till today, CryoPort Inc (NASDAQ:CYRX) averaged just 30,575 shares traded. Bulls hope that with today’s capital raise, management will use the capital raised wisely and unlock value for shareholders. Shares of the stock have been volatile in the past, and the future looks no different in that regard.
What Does The Smart Money Sentiment Say?
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).
Given that it’s a pretty small stock with a market cap of under $50 million, none of the 742 elite institutions that we track owned CryoPort Inc (NASDAQ:CYRX) at the end of 2016.