NASDAQ:NK), 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. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.” data-reactid=”28″>If you want to know who really controls NantKwest, Inc. (NASDAQ:NK), 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. Warren Buffett said that he likes “a business with enduring competitive advantages that is run by able and owner-oriented people.” So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
NantKwest has a market capitalization of US$945m, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about NantKwest.
See our latest analysis for NantKwest ” data-reactid=”30″> See our latest analysis for NantKwest
What Does The Institutional Ownership Tell Us About NantKwest?
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 NantKwest does have institutional investors; and they hold a good portion of the company’s stock. 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. 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 NantKwest, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don’t have a meaningful investment in NantKwest. The company’s CEO Patrick Soon-Shiong is the largest shareholder with 60% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. For context, the second largest shareholder holds about 5.2% of the shares outstanding, followed by an ownership of 2.9% by the third-largest shareholder. Interestingly, the third-largest shareholder, Barry Simon is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company’s top shareholders.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of NantKwest
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.
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.
discover (for free) if they have been buying or selling. ” data-reactid=”71″>Our most recent data indicates that insiders own the majority of NantKwest, Inc.. This means they can collectively make decisions for the company. Given it has a market cap of US$945m, that means they have US$598m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 22% ownership, the general public have some degree of sway over NantKwest. 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.
5 warning signs for NantKwest you should be aware of, and 2 of them are potentially serious.” data-reactid=”75″>It’s always worth thinking about the different groups who own shares in a company. But to understand NantKwest better, we need to consider many other factors. Case in point: We’ve spotted 5 warning signs for NantKwest you should be aware of, and 2 of them are potentially serious.
this free report showing analyst forecasts for its future.” data-reactid=”76″>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=”78″>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.