Fannie Mae, Freddie Mac shares tumble after conservatorship comments
GREENWICH, Conn. - Deep Track Capital, a significant shareholder of Dynavax Technologies Corporation (NASDAQ:DVAX), announced that Glass Lewis, a leading independent proxy advisory firm, has recommended that shareholders vote for two of Deep Track’s director nominees, Brett Erkman and Donald Santel, at the upcoming Annual Meeting of Shareholders. Glass Lewis has also advised withholding votes from Chairman Scott Myers and Director Brent MacGregor. According to InvestingPro data, Dynavax, currently valued at $1.2 billion, has shown strong revenue growth of 24.76% over the last twelve months, though profitability remains a challenge.
The recommendation comes amidst concerns raised by Deep Track regarding Dynavax’s strategic direction and capital allocation, which Glass Lewis acknowledged as valid issues potentially affecting market confidence and share price performance. Glass Lewis concurs with Deep Track’s view that Dynavax’s capital allocation seems overly conservative.
In its analysis, Glass Lewis highlighted the need for boardroom changes, noting the lack of directors with capital markets or institutional investor backgrounds, which could bring a perspective more aligned with shareholder interests. Glass Lewis found that Erkman’s extensive background in public equity investment in life sciences could enhance the board’s approach to capital allocation and shareholder engagement. Santel’s executive experience and transactional background in life sciences were also seen as beneficial for evaluating strategic options.
Glass Lewis expressed concerns about Dynavax’s capital allocation strategy, pointing out the company’s high current ratio and substantial cash balance, which raises questions about missed opportunities for more productive capital deployment. InvestingPro analysis confirms these observations, showing a notably high current ratio of 11.93 and revealing that management has been actively buying back shares. The firm also questioned the timing and scale of share repurchases and the necessity of a recent capital raise given Dynavax’s existing cash reserves. For deeper insights into Dynavax’s financial health and strategic positioning, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Deep Track, which holds approximately 14.82% of Dynavax’s shares, has been advocating for the election of all four of its nominees, believing that this would best serve shareholder interests. The investment firm, specialized in the life sciences industry, aims to foster long-term partnerships with management teams of innovative biotechnology companies.
The upcoming Annual Meeting will be a pivotal point for Dynavax as shareholders consider the board composition and the strategic direction proposed by Deep Track. The company’s responses to Glass Lewis’s recommendations and the outcome of the shareholder vote will be closely watched by investors and industry observers. InvestingPro data shows the company maintains an overall "GOOD" financial health score of 2.7, with particularly strong cash flow metrics, suggesting a solid foundation for future strategic initiatives. Additional ProTips and detailed financial metrics are available to InvestingPro subscribers.
This article is based on a press release statement from Deep Track Capital.
In other recent news, Dynavax Technologies Corporation reported a significant earnings per share (EPS) miss for the first quarter of 2025, with an actual EPS of -$0.77 compared to the forecasted $0.04. Despite this, the company experienced a 34% year-over-year revenue increase, driven primarily by a 36% growth in net sales of its HEPLISAV-B vaccine. Citizens JMP adjusted its financial outlook for Dynavax, reducing the price target from $33.00 to $31.00, while maintaining a Market Outperform rating, citing a strong start to the second quarter of 2025. Meanwhile, Deep Track Capital, a major shareholder with a 14.82% stake, is pushing for changes in Dynavax’s board, expressing dissatisfaction with the company’s performance and strategy. In response, Dynavax has defended its long-term strategy and highlighted its 203% return to stockholders over the past five years. The company is also expanding its research and development efforts, with plans to initiate clinical trials for new vaccines targeting pandemic influenza and Lyme disease. The upcoming proxy vote on June 11, 2025, where Deep Track is contesting four board seats, could potentially influence Dynavax’s strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.