Bridge Biotherapeutics, Inc.'s (KOSDAQ:288330) hedge funds investors lost 11% over the past week but have profited from longer-term gains

Key Insights

• Significantly high institutional ownership implies Bridge Biotherapeutics' stock price is sensitive to their trading actions
• 59% of the company is held by a single shareholder (Parataxis Holdings LLC)
• Insiders own 10% of Bridge Biotherapeutics

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A look at the shareholders of Bridge Biotherapeutics, Inc. (KOSDAQ:288330) can tell us which group is most powerful. We can see that hedge funds own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Hedge funds investors was the group most impacted after the company's market cap fell to ₩158b last week. However, the 61% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

Let's take a closer look to see what the different types of shareholders can tell us about Bridge Biotherapeutics.

See our latest analysis for Bridge Biotherapeutics

What Does The Institutional Ownership Tell Us About Bridge Biotherapeutics?

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.

Bridge Biotherapeutics already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Bridge Biotherapeutics' earnings history below. Of course, the future is what really matters.

It would appear that 59% of Bridge Biotherapeutics shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is Parataxis Holdings LLC with 59% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 8.1% and 4.1%, of the shares outstanding, respectively. Jeong-Gyu Lee, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Bridge Biotherapeutics

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Bridge Biotherapeutics, Inc.. Insiders have a ₩16b stake in this ₩158b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bridge Biotherapeutics. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bridge Biotherapeutics better, we need to consider many other factors. Take risks for example - Bridge Biotherapeutics has 4 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.