Key Insights
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The considerable ownership by retail investors in Corbus Pharmaceuticals Holdings indicates that they collectively have a greater say in management and business strategy
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A total of 25 investors have a majority stake in the company with 49% ownership
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23% of Corbus Pharmaceuticals Holdings is held by Institutions
If you want to know who really controls Corbus Pharmaceuticals Holdings, Inc. ( NASDAQ:CRBP ), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 46% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
Hedge funds, on the other hand, account for 24% of the company's stockholders.
Let's delve deeper into each type of owner of Corbus Pharmaceuticals Holdings, beginning with the chart below.
See our latest analysis for Corbus Pharmaceuticals Holdings
What Does The Institutional Ownership Tell Us About Corbus Pharmaceuticals Holdings?
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.
Corbus Pharmaceuticals Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Corbus Pharmaceuticals Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
It looks like hedge funds own 24% of Corbus Pharmaceuticals Holdings 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. The company's largest shareholder is Cormorant Asset Management, LP, with ownership of 13%. OrbiMed Advisors LLC is the second largest shareholder owning 6.3% of common stock, and Octagon Capital Advisors LP holds about 6.0% of the company stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Corbus Pharmaceuticals Holdings
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.
Our most recent data indicates that insiders own less than 1% of Corbus Pharmaceuticals Holdings, Inc.. It has a market capitalization of just US$156m, and the board has only US$425k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 46% stake in Corbus Pharmaceuticals Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With a stake of 6.3%, private equity firms could influence the Corbus Pharmaceuticals Holdings board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Corbus Pharmaceuticals Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Corbus Pharmaceuticals Holdings (of which 3 don't sit too well with us!) you should know about.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts .
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This article by Simply Wall St is general in nature.
We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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.
