Does Gamida Cell Ltd. (NASDAQ: GMDA) is popular among institutions?
The major groups of shareholders of Gamida Cell Ltd. (NASDAQ: GMDA) have power over the business. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
With a market cap of US $ 282 million, Gamida Cell is a small cap stock, so it may not be well known to many institutional investors. In the graph below, we can see that the institutions hold shares in the company. We can zoom in on the different ownership groups, to find out more about Gamida Cell.
Check out our latest review for Gamide Cell
What does institutional ownership tell us about Gamida Cell?
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 businesses to have some institutions listed, especially if they are growing.
We can see that Gamida Cell has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be careful not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Gamida Cell’s revenue and historical earnings below, but keep in mind that there is always more to tell.
Hedge funds don’t have a lot of stock in Gamida Cell. FMR LLC is currently the largest shareholder, with 9.1% of the shares outstanding. With 7.9% and 7.3% of shares outstanding, respectively, Federated Hermes, Inc. and Novartis AG are the second and third shareholders.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of Gamida Cell
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
We note that our data does not show any member of the board of directors owning shares, personally. Since we do not track insider ownership, we may have missing data. It would therefore be interesting to assess here the remuneration and seniority of the CEO.
General public property
The general public holds 25% of the capital of Gamida Cell. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Owned by a private company
We can see that the private companies own 15% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
Public enterprise ownership
State-owned companies currently own 10% of the shares of Gamide Cell. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Be aware that Gamida Cell displays 3 warning signs in our investment analysis , you must know…
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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