The large shareholder groups of Ionis Pharmaceuticals, Inc. (NASDAQ: IONS) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
Ionis Pharmaceuticals is a pretty big company. It has a market capitalization of US$5.6 billion. Normally, institutions own a significant share of a business of this size. Our analysis of company ownership, below, shows that institutional investors have bought the company. We can zoom in on the different ownership groups, to learn more about Ionis Pharmaceuticals.
Check out our latest analysis for Ionis Pharmaceuticals
What does institutional ownership tell us about Ionis Pharmaceuticals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
We can see that Ionis Pharmaceuticals has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth checking out the earnings history of Ionis Pharmaceuticals below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. We note that hedge funds have no significant investment in Ionis Pharmaceuticals. FMR LLC is currently the company’s largest shareholder with 15% of the outstanding shares. T. Rowe Price Group, Inc. is the second largest shareholder with 10% common stock and The Vanguard Group, Inc. owns approximately 8.5% of the company’s stock.
We dug a little deeper and found that 6 of the major shareholders make up about 51% of the register, implying that along with the large shareholders there are a few smaller shareholders, thus balancing everyone’s interests somewhat.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider ownership of Ionis Pharmaceuticals
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true 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.
Our information suggests that insiders of Ionis Pharmaceuticals, Inc. own less than 1% of the company. This is a fairly large company, so it would be possible for board members to hold a significant stake in the company, without holding much proportional interest. In this case, they own about $50 million worth of stock (at today’s prices). It’s good to see board members owning stock, but it can be helpful to check whether those insiders have bought.
General public property
The general public, who are usually individual investors, hold a 10% stake in Ionis Pharmaceuticals. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we have identified 1 warning sign for Ionis Pharmaceuticals of which you should be aware.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.