Could The Fortress Biotech, Inc. (NASDAQ:FBIO) Ownership Structure Tell Us Something Useful?
NASDAQ:FBIO), then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.” data-reactid=”28″>If you want to know who really controls Fortress Biotech, Inc. (NASDAQ:FBIO), then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.
Fortress Biotech is a smaller company with a market capitalization of US$395m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about Fortress Biotech.
View our latest analysis for Fortress Biotech ” data-reactid=”30″> View our latest analysis for Fortress Biotech
What Does The Institutional Ownership Tell Us About Fortress Biotech?
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 Fortress Biotech. 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. 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 Fortress Biotech, (below). Of course, keep in mind that there are other factors to consider, too.
It looks like hedge funds own 5.0% of Fortress Biotech shares. 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. Our data suggests that Michael Weiss, who is also the company’s Senior Key Executive, holds the most number of shares at 12%. When an insider holds a sizeable amount of a company’s stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 11% and 5.0% of the shares outstanding respectively, Lindsay Rosenwald and Nantahala Capital Management, LLC are the second and third largest shareholders. Interestingly, the second-largest shareholder, Lindsay Rosenwald is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company’s top shareholders.
After doing some more digging, we found that the top 24 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Fortress Biotech
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
if those insiders have been buying recently. ” data-reactid=”72″>Our information suggests that insiders maintain a significant holding in Fortress Biotech, Inc.. Insiders own US$105m worth of shares in the US$395m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, with a 47% 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.
Next Steps:
We’ve identified 3 warning signs with Fortress Biotech (at least 1 which is significant) , and understanding them should be part of your investment process.” data-reactid=”76″>While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We’ve identified 3 warning signs with Fortress Biotech (at least 1 which is significant) , and understanding them should be part of your investment process.
report on analyst forecasts.” data-reactid=”77″>If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”79″>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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