U.S. markets open in 3 hours 25 minutes
  • S&P Futures

    4,159.25
    -32.25 (-0.77%)
     
  • Dow Futures

    33,997.00
    -100.00 (-0.29%)
     
  • Nasdaq Futures

    12,654.75
    -192.00 (-1.49%)
     
  • Russell 2000 Futures

    2,006.00
    -1.90 (-0.09%)
     
  • Crude Oil

    75.81
    -0.07 (-0.09%)
     
  • Gold

    1,925.50
    -5.30 (-0.27%)
     
  • Silver

    23.55
    -0.07 (-0.30%)
     
  • EUR/USD

    1.0934
    +0.0023 (+0.21%)
     
  • 10-Yr Bond

    3.3960
    0.0000 (0.00%)
     
  • Vix

    18.54
    +0.67 (+3.75%)
     
  • GBP/USD

    1.2253
    +0.0024 (+0.19%)
     
  • USD/JPY

    128.4870
    -0.1170 (-0.09%)
     
  • BTC-USD

    23,439.25
    -353.89 (-1.49%)
     
  • CMC Crypto 200

    535.39
    -9.93 (-1.82%)
     
  • FTSE 100

    7,834.89
    +14.73 (+0.19%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

Institutional investors own a significant stake of 49% in Chimerix, Inc. (NASDAQ:CMRX)

A look at the shareholders of Chimerix, Inc. (NASDAQ:CMRX) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Chimerix.

View our latest analysis for Chimerix

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Chimerix?

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.

Chimerix 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Chimerix's earnings history below. Of course, the future is what really matters.

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

It looks like hedge funds own 14% of Chimerix shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that Rubric Capital Management LP is the largest shareholder with 8.1% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 6.6% of common stock, and Suvretta Capital Management, LLC holds about 6.0% of the company stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Chimerix

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Chimerix, Inc.. As individuals, the insiders collectively own US$13m worth of the US$208m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 4.0%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Chimerix has 4 warning signs (and 3 which are a bit unpleasant) we think 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.

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