U.S. markets closed
  • S&P 500

    4,352.63
    -90.48 (-2.04%)
     
  • Dow 30

    34,299.99
    -569.38 (-1.63%)
     
  • Nasdaq

    14,546.68
    -423.29 (-2.83%)
     
  • Russell 2000

    2,229.78
    -51.23 (-2.25%)
     
  • Crude Oil

    74.51
    -0.78 (-1.04%)
     
  • Gold

    1,734.30
    -3.20 (-0.18%)
     
  • Silver

    22.49
    +0.02 (+0.08%)
     
  • EUR/USD

    1.1689
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    1.5340
    +0.0500 (+3.37%)
     
  • GBP/USD

    1.3539
    -0.0001 (-0.01%)
     
  • USD/JPY

    111.5710
    +0.0910 (+0.08%)
     
  • BTC-USD

    41,655.98
    -1,536.39 (-3.56%)
     
  • CMC Crypto 200

    1,033.22
    -23.93 (-2.26%)
     
  • FTSE 100

    7,028.10
    -35.30 (-0.50%)
     
  • Nikkei 225

    30,183.96
    -56.10 (-0.19%)
     

Is XOMA Corporation (NASDAQ:XOMA) Popular Amongst Institutions?

  • 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 XOMA Corporation (NASDAQ:XOMA) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

XOMA is a smaller company with a market capitalization of US$204m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about XOMA.

Check out our latest analysis for XOMA

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About XOMA?

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.

As you can see, institutional investors have a fair amount of stake in XOMA. 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. 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 XOMA'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 37% of XOMA 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. Looking at our data, we can see that the largest shareholder is BVF Partners LP with 37% of shares outstanding. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 XOMA

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of XOMA Corporation in their own names. It seems the board members have no more than US$1.2m worth of shares in the US$204m company. 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

The general public, with a 32% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 4.9% of XOMA 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:

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 - XOMA has 2 warning signs we think 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. 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@simplywallst.com.