GH - Guardant Health gains amid activist speculation

2023-05-30 10:55:34 ET

Guardant Health ( NASDAQ: GH ) rose 2% amid vague speculation the company could become a target for an activist.

Guardant Health ( GH ) may be vulnerable to an activist as its share price has been cut by about 45% in the past six months, according to an Activist Insight report that was circulating among traders on Tuesday. Guardant is in the 95th percentile of companies most likely to be targeted by an activist over the coming nine months, according to Insightia's Vulnerability module.

An activist could suggest that Guardant ( GH ) stopped funding the development of new products, according to the report. An activist could also recommend a strategic review to look at cost-cutting initiatives and changes to the company's board.

Guardant ( GH ) shares tumbled 27%  on Dec. 16 after releasing results from a pivotal study of its blood test for colorectal cancer i n average-risk adults that disappointed investors.

On Friday, Citi upgraded Guardant ( GH ) to buy, citing the opportunity t o benefit from a "much cleaner" thesis.

More on Guardant

• Guardant Health downgraded as Citi revisits diagnostics coverage
• Guardant surges 15% after clinical testing drives Q1 revenue; raises outlook
• Guardant Health: On Hold For Now

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