Investing

5 Recent Red-Hot IPOs Are Being Added to the Russell 2000 Next Week

Bolt Biotherapeutics

Trading at levels that are far from extended, this stock looks like a very enticing play now. Bolt Therapeutics Inc. (NASDAQ: BOLT) a clinical-stage immuno-oncology company engaged in the discovery, development and commercialization of pharmaceutical products.

Bolt Therapeutics develops BDC-1001, a human epidermal growth factor receptor 2 (HER2) for the treatment of patients with HER2-expressing solid tumors, including HER2-low tumors. Its preclinical stage product candidates include carcinoembryonic antigen program for colorectal, non-small cell lung, pancreatic and breast cancers; programmed cell death-ligand 1 program for tumors that are nonresponsive to immune checkpoint blockade; and myeloid modulators.

Morgan Stanley’s Overweight rating comes with a $45 price target. No consensus target was available. The share closed Thursday’s trading at $37.47, up over 5% on the day.

Midwest

This is one of the few being added that is not a biotechnology or medical device play. Midwest Holdings Inc. (NASDAQ: MDWT) is a financial services holding company engaged in underwriting and marketing life insurance products in the United States. It offers multiyear guaranteed and fixed indexed annuity products.

So far, institutions have a very small stake in Midwest Holdings. That may indicate that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company itself can improve over time, more institutional buyers are possible in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. Especially when a company is added to a major index.

The Piper Sandler Buy rating is accompanied by a $76 price target, which is the same as the consensus target. The stock closed at $49.38 on Thursday.

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