Individual investors in Abeona Therapeutics Inc. (NASDAQ:ABEO) are its biggest bettors, and their bets paid off as stock gained 45% last week
Key Insights
The considerable ownership by individual investors in Abeona Therapeutics indicates that they collectively have a greater say in management and business strategy
A total of 13 investors have a majority stake in the company with 51% ownership
To get a sense of who is truly in control of Abeona Therapeutics Inc. (NASDAQ:ABEO), it is important to understand the ownership structure of the business. With 42% 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 collectively scored the highest last week as the company hit US$154m market cap following a 45% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Abeona Therapeutics.
Check out our latest analysis for Abeona Therapeutics
What Does The Institutional Ownership Tell Us About Abeona Therapeutics?
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.
We can see that Abeona Therapeutics does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Abeona Therapeutics, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 28% of Abeona Therapeutics shares are controlled by hedge funds. 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 Adage Capital Management, L.P. is the largest shareholder with 13% of shares outstanding. With 9.3% and 5.7% of the shares outstanding respectively, Nantahala Capital Management, LLC and Millennium Management LLC are the second and third largest shareholders. In addition, we found that Vishwas Seshadri, the CEO has 2.1% of the shares allocated to their name.
After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
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 Abeona Therapeutics
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Shareholders would probably be interested to learn that insiders own shares in Abeona Therapeutics Inc.. As individuals, the insiders collectively own US$9.0m worth of the US$154m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Abeona Therapeutics. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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 risks, for instance. Every company has them, and we've spotted 3 warning signs for Abeona Therapeutics you should know about.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report 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.
