With 73% ownership of the shares, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is heavily dominated by institutional owners
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Arrowhead Pharmaceuticals' stock price might be vulnerable to their trading decisions
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A total of 9 investors have a majority stake in the company with 51% ownership
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
If you want to know who really controls Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 73% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of Arrowhead Pharmaceuticals.
See our latest analysis for Arrowhead Pharmaceuticals
What Does The Institutional Ownership Tell Us About Arrowhead Pharmaceuticals?
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 Arrowhead Pharmaceuticals does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Arrowhead Pharmaceuticals' historic earnings and revenue below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It looks like hedge funds own 7.2% of Arrowhead Pharmaceuticals shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our data shows that BlackRock, Inc. is the largest shareholder with 13% of shares outstanding. With 9.8% and 7.2% of the shares outstanding respectively, The Vanguard Group, Inc. and Avoro Capital Advisors LLC are the second and third largest shareholders. Furthermore, CEO Christopher Anzalone is the owner of 3.0% of the company's shares.