U.S. Markets open in 3 hrs 46 mins
  • S&P Futures

    4,620.25
    +54.00 (+1.18%)
     
  • Dow Futures

    34,753.00
    +296.00 (+0.86%)
     
  • Nasdaq Futures

    16,373.25
    +222.75 (+1.38%)
     
  • Russell 2000 Futures

    2,242.30
    +45.00 (+2.05%)
     
  • Crude Oil

    69.13
    +2.95 (+4.46%)
     
  • Gold

    1,787.30
    +10.80 (+0.61%)
     
  • Silver

    22.92
    +0.10 (+0.46%)
     
  • EUR/USD

    1.1325
    -0.0014 (-0.1246%)
     
  • 10-Yr Bond

    1.4430
    0.0000 (0.00%)
     
  • Vix

    23.81
    +6.70 (+39.16%)
     
  • GBP/USD

    1.3306
    +0.0004 (+0.0333%)
     
  • USD/JPY

    113.4710
    +0.2910 (+0.2571%)
     
  • BTC-USD

    57,047.89
    +140.40 (+0.25%)
     
  • CMC Crypto 200

    1,467.51
    -0.42 (-0.03%)
     
  • FTSE 100

    7,155.16
    +95.71 (+1.36%)
     
  • Nikkei 225

    27,935.62
    +113.86 (+0.41%)
     

How Much Of Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) Do Institutions Own?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

A look at the shareholders of Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Dicerna Pharmaceuticals isn't enormous, but it's not particularly small either. It has a market capitalization of US$1.5b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Dicerna Pharmaceuticals.

View our latest analysis for Dicerna Pharmaceuticals

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Dicerna 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.

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

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Our data indicates that hedge funds own 9.7% of Dicerna Pharmaceuticals. 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. The company's largest shareholder is RTW Investments, LP, with ownership of 9.7%. With 7.4% and 7.0% of the shares outstanding respectively, BlackRock, Inc. and Eli Lilly and Company are the second and third largest shareholders.

After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Dicerna Pharmaceuticals

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 Dicerna Pharmaceuticals, Inc. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own US$3.6m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 13% ownership, the general public have some degree of sway over Dicerna Pharmaceuticals. 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.

Public Company Ownership

We can see that public companies hold 7.0% of the Dicerna Pharmaceuticals shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Dicerna Pharmaceuticals (1 is a bit unpleasant) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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.

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