The large shareholder groups of VectivBio Holding AG (NASDAQ:VECT) have power over the company. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.
With a market capitalization of $238 million, VectivBio Holding is a small cap, so it may not be well known to many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. We can zoom in on the different ownership groups, to learn more about VectivBio Holding.
See our latest analysis for VectivBio Holding
What does institutional ownership tell us about VectivBio Holding?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
VectivBio Holding already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out VectivBio Holding’s earnings history below. Of course, the future is what really matters.
It would seem that 6.0% of the shares of VectivBio Holding are controlled by hedge funds. This catches my attention because hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Looking at our data, we can see that the largest shareholder is OrbiMed Advisors LLC with 12% of the shares outstanding. In comparison, the second and third shareholders hold around 10% and 7.5% of the shares. Additionally, we found that Luca Santarelli, the CEO has 3.4% of the shares attributed to their name.
We dug a little deeper and found that 7 of the major shareholders make up about 54% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.
Insider ownership of VectivBio Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
We can see insiders holding shares of VectivBio Holding AG. It has a market capitalization of just US$238 million and insiders hold US$16 million worth of shares, in their own name. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.
General public property
With a 31% stake, the general public, consisting mainly of individual investors, has some influence over VectivBio Holding. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
Private equity ownership
The private equity firms hold a 43% stake in VectivBio Holding. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. For example, we have identified 4 warning signs for VectivBio Holding (2 doesn’t sit too well with us) which you should be aware of.
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.