Genenta Science S.p.A.'s (NASDAQ:GNTA) market cap rose US$46m last week; individual investors who hold 55% profited and so did insiders

In This Article:

Key Insights

  • The considerable ownership by individual investors in Genenta Science indicates that they collectively have a greater say in management and business strategy

  • 45% of the business is held by the top 20 shareholders

  • 28% of Genenta Science is held by insiders

Every investor in Genenta Science S.p.A. (NASDAQ:GNTA) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 57% increase in the stock price last week, individual investors profited the most, but insiders who own 28% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Genenta Science.

View our latest analysis for Genenta Science

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Genenta Science?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Genenta Science does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Genenta Science's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

We note that hedge funds don't have a meaningful investment in Genenta Science. Looking at our data, we can see that the largest shareholder is the CEO Pierluigi Paracchi with 13% of shares outstanding. With 10% and 7.6% of the shares outstanding respectively, San Raffaele S.p.A. and Luigi Naldini are the second and third largest shareholders. Interestingly, the third-largest shareholder, Luigi Naldini is also a Chairman of Advisory Board, again, indicating strong insider ownership amongst the company's top shareholders.

A deeper look at our ownership data shows that the top 20 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.