U.S. markets open in 9 hours 25 minutes
  • S&P Futures

    3,785.50
    -17.75 (-0.47%)
     
  • Dow Futures

    30,230.00
    -135.00 (-0.44%)
     
  • Nasdaq Futures

    11,585.25
    -55.50 (-0.48%)
     
  • Russell 2000 Futures

    1,769.30
    -12.20 (-0.68%)
     
  • Crude Oil

    86.14
    -0.38 (-0.44%)
     
  • Gold

    1,728.20
    -2.30 (-0.13%)
     
  • Silver

    20.90
    -0.20 (-0.97%)
     
  • EUR/USD

    0.9973
    -0.0013 (-0.13%)
     
  • 10-Yr Bond

    3.6170
    -0.0340 (-0.93%)
     
  • Vix

    29.07
    -1.03 (-3.42%)
     
  • GBP/USD

    1.1435
    -0.0040 (-0.35%)
     
  • USD/JPY

    144.0800
    -0.1190 (-0.08%)
     
  • BTC-USD

    20,192.64
    +594.97 (+3.04%)
     
  • CMC Crypto 200

    458.00
    +12.57 (+2.82%)
     
  • FTSE 100

    7,086.46
    +177.70 (+2.57%)
     
  • Nikkei 225

    27,079.86
    +87.65 (+0.32%)
     

Humacyte, Inc.'s (NASDAQ:HUMA) last week's 12% decline must have disappointed individual investors who have a significant stake

·4 min read

If you want to know who really controls Humacyte, Inc. (NASDAQ:HUMA), then you'll have to look at the makeup of its share registry. With 38% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors as a group endured the highest losses last week after market cap fell by US$53m.

Let's delve deeper into each type of owner of Humacyte, beginning with the chart below.

Check out our latest analysis for Humacyte

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Humacyte?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Humacyte already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Humacyte, (below). Of course, keep in mind that there are other factors to consider, too.

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

Humacyte is not owned by hedge funds. Ayabudge LLC is currently the largest shareholder, with 18% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 8.7% by the third-largest shareholder. Additionally, the company's CEO Laura Niklason directly holds 1.1% of the total shares outstanding.

We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Humacyte

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Humacyte, Inc.. Insiders have a US$48m stake in this US$369m business. 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

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Humacyte. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 18%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 18% of Humacyte stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Humacyte (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here