Do Institutions Own CRISPR Therapeutics AG (NASDAQ:CRSP) Shares? – Simply Wall St

Posted: August 25, 2020 at 5:52 pm

A look at the shareholders of CRISPR Therapeutics AG (NASDAQ:CRSP) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of US$6.3b, CRISPR Therapeutics is rather large. Wed expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Lets take a closer look to see what the different types of shareholders can tell us about CRISPR Therapeutics.

Check out our latest analysis for CRISPR Therapeutics

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once its included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

CRISPR 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. Its therefore worth looking at CRISPR Therapeutics earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds dont have a meaningful investment in CRISPR Therapeutics. ARK Investment Management LLC is currently the largest shareholder, with 9.2% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 5.3%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stocks expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in CRISPR Therapeutics AG. This is a big company, so it is good to see this level of alignment. Insiders own US$78m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

With a 30% ownership, the general public have some degree of sway over CRISPR Therapeutics. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

With an ownership of 5.9%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

We can see that public companies hold 8.0% of the CRISPR Therapeutics shares on issue. We cant be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, weve identified 3 warning signs for CRISPR Therapeutics that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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Do Institutions Own CRISPR Therapeutics AG (NASDAQ:CRSP) Shares? - Simply Wall St

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