After losing 17% in the past year, Century Therapeutics, Inc. (NASDAQ:IPSC) institutional owners must be relieved by the recent gain
In This Article:
Key Insights
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Institutions' substantial holdings in Century Therapeutics implies that they have significant influence over the company's share price
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50% of the business is held by the top 5 shareholders
To get a sense of who is truly in control of Century Therapeutics, Inc. (NASDAQ:IPSC), it is important to understand the ownership structure of the business. With 29% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
After a year of 17% losses, last week’s 14% gain would be welcomed by institutional investors as a possible sign that returns might start trending higher.
Let's delve deeper into each type of owner of Century Therapeutics, beginning with the chart below.
View our latest analysis for Century Therapeutics
What Does The Institutional Ownership Tell Us About Century Therapeutics?
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.
Century Therapeutics already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Century Therapeutics' earnings history below. Of course, the future is what really matters.
Century Therapeutics is not owned by hedge funds. The company's largest shareholder is Bayer Aktiengesellschaft, with ownership of 15%. In comparison, the second and third largest shareholders hold about 14% and 8.2% of the stock.
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.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Century Therapeutics
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.