Institutions own 21% of Clinuvel Pharmaceuticals Limited (ASX:CUV) shares but retail investors control 59% of the company
In This Article:
Key Insights
-
The considerable ownership by retail investors in Clinuvel Pharmaceuticals indicates that they collectively have a greater say in management and business strategy
-
41% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Clinuvel Pharmaceuticals Limited (ASX:CUV), it is important to understand the ownership structure of the business. With 59% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 21% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Clinuvel Pharmaceuticals.
View our latest analysis for Clinuvel Pharmaceuticals
What Does The Institutional Ownership Tell Us About Clinuvel Pharmaceuticals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Clinuvel Pharmaceuticals. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Clinuvel Pharmaceuticals, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Clinuvel Pharmaceuticals. Looking at our data, we can see that the largest shareholder is BNY Asset Management with 7.7% of shares outstanding. With 6.8% and 5.2% of the shares outstanding respectively, Philippe Wolgen and Ender I , LLC are the second and third largest shareholders. Philippe Wolgen, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.