IMAC - Legendary Investor Peter Lynch Just Bet on IMAC Stock. 9 Things to Know.
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- IMAC Holdings (NASDAQ:IMAC) stock is up more than 15% on news that legendary investor Peter Lynch has taken a stake in the company
- Lynch is revered as one of the all-time great stock pickers on Wall Street
- Prior to today, IMAC stock had been trading at just 85 cents a share
Legendary investor Peter Lynch of Fidelity fame just took a 5.2% stake in IMAC Holdings (NASDAQ:IMAC), sending the little-known penny stock up more than 15% today.
According to his latest 13G filing with the U.S. Securities and Exchange Commission (SEC), Lynch, a former star mutual fund manager at Fidelity Investments, has taken a stake in IMAC Holdings. IMAC is a company based in Brentwood, Tennessee that was started in 2015 and operates 15 outpatient clinics across the U.S. These clinics provide sports medicine treatments that focus on regenerative, orthopedic and minimally invasive procedures.
Before today’s disclosure, IMAC stock was trading at just 85 cents a share, putting it deep in penny stock territory. Here are nine things investors should know about IMAC Holdings and Peter Lynch’s track record as a professional investor and money manager.
9 Things to Know About Peter Lynch and IMAC Stock
- Lynch, age 78, ran Fidelity’s Magellan Fund for 13 years from 1977–1990 and earned a reputation as a top performer.
- While at Fidelity, Lynch’s annualized return averaged 29%, making him one of the best stock pickers and money managers in Wall Street history.
- Lynch has also written several popular books on investing, including One Up On Wall Street.
- Lynch’s 5.2% stake in IMAC Holdings is unusual as Lynch typically tries to avoid owning more than 5% of a particular stock. He told Bloomberg News that didn’t realize that his $1.2 million stake put him over that threshold, requiring him to disclose it in an SEC filing.
- Lynch is a big fan of small-cap stocks such as IMAC Holdings, saying they are less well followed than large-cap stocks.
- IMAC Holdings is largely focused on helping professional athletes rehabilitate from injuries. Several of the companies Regeneration Centers are named after professional athletes, including baseball player David Price and football-player-turned-coach Mike Ditka.
- IMAC Holdings says it is focused on “treating sports and orthopedic injuries and movement-restricting diseases without surgery or opioids.”
- IMAC Holdings went public in February 2019. Since then, the company’s share price has fallen 73%.
- The short interest in IMAC stock fell sharply in April, totaling just 261,200 shares as of April 30. That represents a decline of 29.6% from April 15.
What’s Next
IMAC Holdings gets a big bounce higher today on news that legendary investor Peter Lynch has placed a bet with the sports medicine company. While news of Lynch’s investment is impressive, investors should remember that IMAC Holdings is a small, thinly traded stock that has struggled mightily since going public. Lynch’s investment is not a guarantee that IMAC’s share price will turn around.
On Penny Stocks and Low-Volume Stocks:?With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that?InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More:?Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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