With 64% ownership, Bioventix PLC (LON:BVXP) boasts of strong institutional backing
In This Article:
Key Insights
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Significantly high institutional ownership implies Bioventix's stock price is sensitive to their trading actions
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52% of the business is held by the top 7 shareholders
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Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
Every investor in Bioventix PLC (LON:BVXP) should be aware of the most powerful shareholder groups. With 64% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Bioventix, beginning with the chart below.
Check out our latest analysis for Bioventix
What Does The Institutional Ownership Tell Us About Bioventix?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Bioventix. 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 Bioventix, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Bioventix. Castlefield Investments is currently the company's largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 10% of the stock. Furthermore, CEO Peter Harrison is the owner of 5.7% of the company's shares.
We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.