With 46% ownership in Ryvu Therapeutics S.A. (WSE:RVU), institutional investors have a lot riding on the business

Key Insights

• Given the large stake in the stock by institutions, Ryvu Therapeutics' stock price might be vulnerable to their trading decisions
• The top 4 shareholders own 52% of the company
• 24% of Ryvu Therapeutics is held by insiders

To get a sense of who is truly in control of Ryvu Therapeutics S.A. (WSE:RVU), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit zł1.4b in market cap. One-year return to shareholders is currently 11% and last week’s gain was the icing on the cake.

In the chart below, we zoom in on the different ownership groups of Ryvu Therapeutics.

See our latest analysis for Ryvu Therapeutics

What Does The Institutional Ownership Tell Us About Ryvu 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.

We can see that Ryvu Therapeutics does have institutional investors; and they hold a good portion of the company's stock. 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 Ryvu Therapeutics' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Ryvu Therapeutics. With a 18% stake, CEO Pawel Przewiezlikowski is the largest shareholder. In comparison, the second and third largest shareholders hold about 17% and 8.3% of the stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Ryvu Therapeutics

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.

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 information suggests that insiders maintain a significant holding in Ryvu Therapeutics S.A.. Insiders own zł332m worth of shares in the zł1.4b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 8.3% of Ryvu Therapeutics. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ryvu Therapeutics better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Ryvu Therapeutics you should be aware of, and 1 of them is a bit concerning.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.