Retail investors in Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) are its biggest bettors, and their bets paid off as stock gained 214% last week
Key Insights
Corbus Pharmaceuticals Holdings' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
27% of the business is held by the top 25 shareholders
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP), then you'll have to look at the makeup of its share registry. With 32% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, retail investors were the biggest beneficiaries of last week’s 214% gain.
Let's take a closer look to see what the different types of shareholders can tell us about Corbus Pharmaceuticals Holdings.
See our latest analysis for Corbus Pharmaceuticals Holdings
What Does The Institutional Ownership Tell Us About Corbus Pharmaceuticals Holdings?
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 Corbus Pharmaceuticals Holdings does have institutional investors; and they hold a good portion of the company's stock. 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 Corbus Pharmaceuticals Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 9.3% of Corbus Pharmaceuticals Holdings shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Tang Capital Management, LLC is currently the largest shareholder, with 9.6% of shares outstanding. Ikarian Capital, LLC is the second largest shareholder owning 4.4% of common stock, and The Vanguard Group, Inc. holds about 4.1% of the company stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Corbus Pharmaceuticals Holdings
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 Corbus Pharmaceuticals Holdings, Inc. insiders own under 1% of the company. It has a market capitalization of just US$232m, and the board has only US$325k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Corbus Pharmaceuticals Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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. For example, we've discovered 5 warning signs for Corbus Pharmaceuticals Holdings (4 are significant!) that you should be aware of before investing here.
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.
