Q: Your thoughts on GUD going forward in light of:
07:20 AM EDT, 03/24/2025 (MT Newswires) -- Knight Therapeutics (GUD.TO) overnight Sunday said G252 Capital has disposed of 2.5 million of its shares at $6.30 each, and no longer holds over 10% of Knight's outstanding shares.
G2S2 now owns 7.54 million Knight shares, for a 7.6% stake.
Does this limit upside of the stock price?
07:20 AM EDT, 03/24/2025 (MT Newswires) -- Knight Therapeutics (GUD.TO) overnight Sunday said G252 Capital has disposed of 2.5 million of its shares at $6.30 each, and no longer holds over 10% of Knight's outstanding shares.
G2S2 now owns 7.54 million Knight shares, for a 7.6% stake.
Does this limit upside of the stock price?
5i Research Answer:
Not necessarily, but investors could fear that G252 will keep selling its remaining shares, and thus this might be viewed as an 'overhang' of shares for a period of time. The fund will no longer have to report sales, so we would watch trading volume here for signs that it is still exiting. But if fundamentals are good the stock should be able to absorb some selling over the course of two to three months, we would expect.