Investing

Slate Path Owns 16.5% Cyclerion Stake, Lobbies For Changes

Ben Ward

Published: October 24, 2022 4:11 am

Last Updated: October 24, 2022 11:53 am

New York activist shareholder Slate Path Capital LP on Friday filed a 13D form with the SEC disclosing a 7.16 million share, or 16.5% stake in Cyclerion Therapeutics Inc (CYCN),

The stake was unchanged from a previous filing, but the investor updated his plans at the company.

Slate Path believes the shares are significantly undervalued and represent an attractive investment opportunity. It believes there are “numerous” operational and strategic opportunities to maximize shareholder value and intends to discuss them with the company’s board.

CYCN’s stock rose 10.55% in after hours trading following the announcement.

Still, the shares are off 78% year to date, including a 60% collapse last week following management’s decision to shift focus, slash staff and unveil a $1.9 million fourth quarter charge.

Two sell-side institutions cover CYCN, and both have “buy” recommendations on the stock. The average target price between them is $9.

What are other large shareholders doing?

Slate Path Capital LP holds 7,157,601 shares representing 16.46% ownership of the company. No change in the last quarter.

MFN Partners Management, LP holds 3,389,215 shares representing 7.79% ownership of the company. No change in the last quarter.

Artal Group S.A. holds 2,779,122 shares representing 6.39% ownership of the company. No change in the last quarter.

Fmr Llc holds 2,537,723 shares representing 5.84% ownership of the company. In it’s prior filing, the firm reported owning 2,615,010 shares, representing a decrease of 3.05%. The firm decreased its portfolio allocation in CYCN by 40.15% over the last quarter.

Vanguard Group Inc holds 1,754,153 shares representing 4.03% ownership of the company. No change in the last quarter.

What is the overall institutional sentiment?

There are 75 funds or institutions reporting positions in Cyclerion Therapeutics Inc. This is a decrease of 16 owner(s) or 17.58%.

Average portfolio weight of all funds dedicated to Cyclerion Therapeutics Inc is 0.0087%, a decrease of 26.1173%. Total shares owned by institutions decreased in the last three months by 9.07% to 21,176,514 shares.

Based on this information, institutional sentiment is bearish.

This article originally appeared on Fintel