TSE:BLU), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.” data-reactid=”28″>If you want to know who really controls BELLUS Health Inc. (TSE:BLU), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of CA$189m, BELLUS Health is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about BELLUS Health.
See our latest analysis for BELLUS Health ” data-reactid=”30″> See our latest analysis for BELLUS Health
What Does The Institutional Ownership Tell Us About BELLUS Health?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in BELLUS Health. 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 BELLUS Health, (below). Of course, keep in mind that there are other factors to consider, too.
It looks like hedge funds own 9.9% of BELLUS Health 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 RTW Investments, LP with 9.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.5% and 8.2%, of the shares outstanding, respectively. Additionally, the company’s CEO Roberto Bellini directly holds 1.0% of the total shares outstanding.
On further inspection, we found that more than half the company’s shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of BELLUS Health
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
if those insiders have been selling. ” data-reactid=”72″>Our most recent data indicates that insiders own some shares in BELLUS Health Inc.. As individuals, the insiders collectively own CA$5.6m worth of the CA$189m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public holds a 13% stake in BELLUS Health. 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.
Private Equity Ownership
Private equity firms hold a 14% stake in BELLUS Health. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Private Company Ownership
It seems that Private Companies own 8.7%, of the BELLUS Health stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
5 warning signs for BELLUS Health (of which 2 can’t be ignored!) you should know about.” data-reactid=”80″>It’s always worth thinking about the different groups who own shares in a company. But to understand BELLUS Health better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 5 warning signs for BELLUS Health (of which 2 can’t be ignored!) you should know about.
this free report showing whether analysts are predicting a brighter future.” data-reactid=”81″>But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”83″>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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