Hedge Funds Were Right About These 5 Small-Cap Stocks

1. Tricida Inc. (NASDAQ:TCDA)

Market Cap (As of August 17): $740.4M

Number of Hedge Fund Holdings: 30

YTD Gains (As of August 17): 50.45%

Based in Southern San Francisco, California, Tricida Inc. (NASDAQ:TCDA) is an American pharmaceutical company which specializes in the development and commercialization of an investigational drug candidate called Veverimer, which is designed to treat metabolic acidosis in patients with chronic kidney disease. In Q2 2022, Tricida Inc. (NASDAQ:TCDA) posted an EPS of negative $0.49, beating estimates of negative $0.58 by $0.09.

The company has gained over 50% year-to-date, as of August 17, and as of Q1 2022, investor interest in Tricida Inc. (NASDAQ:TCDA) was at an all-time-high, with the 30 hedge funds long the stock. Some of the most prominent hedge funds to invest in Tricida Inc. (NASDAQ:TCDA) in Q1 2022 include Point72 Asset Management and Deep Track Capital. Samuel Isaly’s OrbiMed Advisors is the largest stakeholder in the company, having a total stake worth over $84.5 million.

On April 12, Goldman Sachs analyst Madhu Kumar initiated coverage of Tricida Inc. (NASDAQ:TCDA) with a Buy rating and a $25 price target. In a research note, the analyst noted that she is optimistic with respect to the outlook for the company’s development of Veverimer, considering the safety and efficacy in three previous placebo-controlled studies which were conducted ahead of the results of a phase 3 study. The data, according to Kumar, seems very promising, and the upcoming results from the studies should be a “key event” for the shares. Moreover, four Wall Street analysts have conferred Tricida Inc. (NASDAQ:TCDA) with a consensus Buy rating since May 2022.

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