Chicago Capital Reduces Stake in PROCEPT BioRobotics
On January 26, Chicago Capital announced through a filing with the SEC that it has decreased its investment in PROCEPT BioRobotics (NASDAQ: PRCT) by selling 377,850 shares during the fourth quarter. This sale is estimated to be worth about $12.53 million, based on average market prices for the quarter.
Following this transaction, Chicago Capital’s remaining investment in PROCEPT is now valued at $37.47 million. The overall value of this position decreased by $18.52 million, impacted by both share sales and fluctuations in stock prices.
In terms of percentages, Chicago Capital’s investment in PROCEPT now represents 0.93% of its total assets, down from 1.38% in the previous quarter.
Top Holdings Post-Filing:
- Alphabet (GOOGL): $248.84 million (6.15% of total assets)
- Meta Platforms (META): $189.10 million (4.67% of total assets)
- Amazon (AMZN): $168.92 million (4.17% of total assets)
- Nvidia (NVDA): $148.39 million (3.66% of total assets)
- Visa (V): $141.11 million (3.49% of total assets)
As of January 26, the shares of PROCEPT BioRobotics were priced at $29.61, reflecting a significant decline of 60.4% over the past year. In contrast, the S&P 500 index rose approximately 14% in the same timeframe.
Company Overview
PROCEPT BioRobotics specializes in robotic systems for minimally invasive urologic surgery, focusing on treating benign prostatic hyperplasia (BPH). The company generates revenue by selling robotic systems, single-use consumables, and service contracts. It primarily caters to hospitals and urology centers serving male patients with urinary issues related to BPH.
Despite facing challenges, PROCEPT continues to grow. In its most recent quarter, it reported a revenue increase of 43% year-over-year, reaching $83.3 million, with a 65% gross margin. The company has set a revenue target between $410 million and $430 million for 2026, signaling potential growth of up to 32% from 2025 levels.
While the company is expanding, its stock performance has been lackluster. Over the last year, fears about operating losses and high spending have led to a drop in share prices. In its latest quarterly report, PROCEPT recorded an adjusted EBITDA loss of $7.4 million and is still investing heavily in its growth.
In a broader context, Chicago Capital’s strategy appears to reflect a focus on reducing exposure to more volatile investments while maintaining stronger positions in stable tech companies.
