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
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.
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
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.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Genenta Science
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Genenta Science S.p.A.. It has a market capitalization of just US$103m, and insiders have US$29m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 55% stake in Genenta Science, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
Private Company Ownership
It seems that Private Companies own 10%, of the Genenta Science stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
