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Christopher Posner, President and CEO of Cara Therapeutics Inc. (NASDAQ:CARA), a small-cap biotech company with a market capitalization of $23.22 million, recently sold shares of the company’s common stock. According to InvestingPro analysis, the company currently trades near its Fair Value. The transaction, which took place on February 4, 2025, involved the sale of 372 shares at a weighted average price of $4.72, totaling approximately $1,755. This sale was part of a pre-arranged "sell to cover" plan designed to meet tax obligations from vested restricted stock units, rather than a discretionary trade by Posner. Following this transaction, Posner holds 13,692 shares of Cara Therapeutics. The reported shares reflect a 1-for-12 reverse stock split that occurred on December 30, 2024. With the company’s next earnings report due on February 26 and InvestingPro data showing the company is quickly burning through cash, investors should note that comprehensive analysis, including 10+ additional ProTips and detailed financial metrics, is available through InvestingPro’s Research Reports.
In other recent news, Cara Therapeutics has regained compliance with Nasdaq’s minimum bid price requirement following the execution of a 1-for-12 reverse stock split, approved by stockholders and the board of directors. The reverse stock split proportionally adjusted the number of shares issued and outstanding, reducing the total number of authorized shares from 200 million to approximately 16.67 million. Concurrently, Cara Therapeutics announced a proposed merger with Tvardi Therapeutics, Inc., which is still pending and is expected to fulfill the criteria for initial listing on the Nasdaq Capital Market, including a higher minimum bid price and stockholders’ equity requirement.
In addition to these developments, Cara Therapeutics sold certain assets and rights related to Korsuva®/Kapruvia® to Vifor Fresenius Medical (TASE:PMCN) Care (NYSE:FMS) Renal Pharma, Ltd., for a purchase price of $900,000, subject to adjustments. The merger agreement with Tvardi Therapeutics is expected to result in a combined entity focused on the development of treatments for fibrosis-driven diseases, with pre-merger Cara stockholders owning approximately 17% of the new company. The merged entity, operating under the name Tvardi Therapeutics, Inc., is expected to have sufficient funds to operate into the second half of 2026. It’s important to note that these are recent developments, and the proposed merger is subject to customary closing conditions, including regulatory approvals and approval by the stockholders of both companies.
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