A $2.38B stake in a $372M company: the number that doesn't add up
What's the deal? Meros Investment Management LPDealroom has a profile for this one. Try Dealroom → disclosed a new stake in Simulations Plus (NASDAQ:SLP) during the second quarter, buying 130,229 shares reported at roughly $2,384,493,000, according to its latest Form 13F filing with the Securities and Exchange Commission. That gives the fund a 0.64% holding in the drug-discovery software maker.
Why it matters: The headline figure sits uncomfortably against the company itself. Simulations Plus carries a market capitalisation of just $372.03 million — meaning the reported value of a sub-1% stake exceeds the entire company several times over, a red flag for a likely filing error.
What the company does: Simulations Plus builds modelling and simulation software used in pharmaceutical research and drug development. Institutional investors own 78.08% of its stock, and company insiders hold 19.10%.
By the numbers: The stock opened at $18.39 on Wednesday, within a 12-month range of $11.09 to $21.01. In its quarter ended July 9, the firm reported earnings of $0.30 per share, beating the $0.23 consensus, on revenue of $21.89 million against expectations of $20.90 million.
Who else is buying: Other institutions adjusted positions in the first and second quarters. Royal Bank of CanadaDealroom has a profile for this one. Try Dealroom → lifted its holding 26.6% to 114,885 shares, while Rhumbline AdvisersDealroom has a profile for this one. Try Dealroom → added 12.2% to reach 74,325 shares. Director Walter S. Woltosz sold 4,177 shares on July 1 at $18.44 under a pre-arranged Rule 10b5-1 plan.
What analysts think: Sentiment has cooled. William BlairDealroom has a profile for this one. Try Dealroom → moved SLP to "market perform" from "outperform," Wall Street ZenDealroom has a profile for this one. Try Dealroom → and Craig HallumDealroom has a profile for this one. Try Dealroom → both cut to "hold," and Craig Hallum set an $18.50 target.
The signal: Beyond the eye-catching dollar figure, the story here is caution. Multiple downgrades and a valuation gap that strains belief suggest investors should read the fine print before reading the headline.
Read more: tickerreport.com
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