NASDAQ:TXMD), 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 TherapeuticsMD, Inc. (NASDAQ:TXMD), 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.
TherapeuticsMD is a smaller company with a market capitalization of US$365m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about TherapeuticsMD.
See our latest analysis for TherapeuticsMD ” data-reactid=”30″> See our latest analysis for TherapeuticsMD
What Does The Institutional Ownership Tell Us About TherapeuticsMD?
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 TherapeuticsMD. 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 TherapeuticsMD’s earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don’t have a meaningful investment in TherapeuticsMD. BlackRock, Inc. is currently the largest shareholder, with 7.8% of shares outstanding. Robert Finizio is the second largest shareholder owning 7.5% of common stock, and T. Rowe Price Group, Inc. holds about 7.0% of the company stock. Robert Finizio, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
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 TherapeuticsMD
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.
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. ” data-reactid=”72″>We can see that insiders own shares in TherapeuticsMD, Inc.. It has a market capitalization of just US$365m, and insiders have US$36m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public holds a 31% stake in TherapeuticsMD. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
3 warning signs we’ve spotted with TherapeuticsMD .” data-reactid=”76″>It’s always worth thinking about the different groups who own shares in a company. But to understand TherapeuticsMD better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we’ve spotted with TherapeuticsMD .
report on analyst forecasts for the company.” data-reactid=”77″>Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
