IN Biotech AG knows which group is the most powerful. Private companies hold the greatest number of shares in the company, approximately 42%. In other words, the group has the greatest upside potential.
As a result, private companies were the biggest beneficiaries of last week’s 15% gain.
We can see that Brain Biotech has institutional investors, and they own a significant amount of the company’s stock. This may indicate that the company has some credibility in the investment community. However, be wary of relying on the ostensible validation that comes with institutional investors. They, too, make mistakes from time to time. If multiple institutions change their stance on a stock at the same time, the share price may fall precipitously. As a result, the earnings history of Brain Biotech is presented below. Of course, what really matters is the future
Brain Biotech is not owned by hedge funds. MP Beteiligungs-GmbH is currently the company’s largest shareholder, with 36% of shares outstanding. With 5.6% and 3.9% of the shares outstanding, respectively, Service Innovation Group GmbH and SPSW Capital GmbH are the second- and third-largest shareholders.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company’s decision-making.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an “insider” is subjective, board members are almost universally regarded as insiders. The board ultimately answers to management. However, it is not uncommon for managers to serve on executive boards, particularly if they are the founder or CEO.
Most people view insider ownership as a positive because it indicates that the board is aligned with other shareholders. On occasion, however, too much power is concentrated within this group.
We should point out that our data does not show any board members personally holding shares. It is unusual for board members not to have some personal holdings, so our data may be flawed. The next step would be to find out how much the CEO is paid.
General Public Ownership
The general public– including retail investors — owns a 36% stake in the company, and hence can’t easily be ignored. 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 Company Ownership
We can see that private companies own 42%, of the shares on issue. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
