Shake-Up Alert: 40 Companies Facing Activist Pressure

28. Engaged Capital at Nevro Corp. (NYSE:NVRO)

Stock Return: – 59%

S&P 500 Return: 13.5%

Investment date: 12/12/2023

Number of hedge funds holding stakes: 29

Nevro Corp. (NYSE:NVRO) is a medical device company that provides products for patients suffering from chronic pain. Activist hedge fund Engaged Capital took a position in the medical devices company, calling it to focus on improving profitability and stop pursuing acquisitions.

Activist investor Engaged Capital confirmed a 3% stake in Nevro Corp. (NYSE:NVRO) in December 2023. Early this year, the company entered into a corporation agreement with the activist investor, upon which it secured a seat on the board to influence strategic direction.

Additionally, the hedge fund believes the company could be an acquisition target of a larger rival, which should provide an avenue for generating value. 29 out of 920 hedge funds tracked by Insider Monkey held stakes in Nevro Corp. (NYSE:NVRO) as of the first quarter, up from 21 as of the end of 2023.