NASDAQ:MIST) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.” data-reactid=”28″>Every investor in Milestone Pharmaceuticals Inc. (NASDAQ:MIST) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Milestone Pharmaceuticals is a smaller company with a market capitalization of US$214m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about Milestone Pharmaceuticals.
View our latest analysis for Milestone Pharmaceuticals ” data-reactid=”30″>View our latest analysis for Milestone Pharmaceuticals
What Does The Institutional Ownership Tell Us About Milestone 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.
We can see that Milestone Pharmaceuticals does have institutional investors; and they hold a good portion of the company’s stock. 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 Milestone Pharmaceuticals’s earnings history, below. Of course, the future is what really matters.
It would appear that 18% of Milestone Pharmaceuticals shares are controlled by hedge funds. 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 RTW Investments, LP is the largest shareholder with 18% of shares outstanding. BDC Capital Inc. is the second largest shareholder owning 9.7% of common stock, and Fonds de solidarité FTQ holds about 9.2% of the company stock. In addition, we found that Joseph Oliveto, the CEO has 0.0113849 of the shares allocated to his name
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company’s decision-making.
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 Milestone 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
click here to see if those insiders have been buying or selling. ” data-reactid=”72″>I can report that insiders do own shares in Milestone Pharmaceuticals Inc.. In their own names, insiders own US$3.6m worth of stock in the US$214m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 21% ownership, the general public have some degree of sway over MIST. 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.
Private Equity Ownership
With an ownership of 46%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
2 warning signs we’ve spotted with Milestone Pharmaceuticals .” data-reactid=”78″>It’s always worth thinking about the different groups who own shares in a company. But to understand Milestone Pharmaceuticals better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we’ve spotted with Milestone Pharmaceuticals .
this free report showing analyst forecasts for its future.” data-reactid=”79″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”81″>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.
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