Angion Biomedica Corp.'s (NASDAQ:ANGN) market cap dropped US$13m last week; individual investors who hold 37% were hit as were institutions

By
Simply Wall St
Published
November 29, 2021
NasdaqGS:ANGN
Source: Shutterstock

Every investor in Angion Biomedica Corp. (NASDAQ:ANGN) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 37% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of individual investors took a hit after last week’s 11% price drop, institutions with their 33% holdings also suffered.

Let's delve deeper into each type of owner of Angion Biomedica, beginning with the chart below.

See our latest analysis for Angion Biomedica

ownership-breakdown
NasdaqGS:ANGN Ownership Breakdown November 30th 2021

What Does The Institutional Ownership Tell Us About Angion Biomedica?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Angion Biomedica 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Angion Biomedica, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:ANGN Earnings and Revenue Growth November 30th 2021

We note that hedge funds don't have a meaningful investment in Angion Biomedica. Our data shows that Eisa-Abc LLC is the largest shareholder with 9.1% of shares outstanding. Schuler Family Foundation, Endowment Arm is the second largest shareholder owning 8.6% of common stock, and Vifor Pharma AG holds about 6.7% of the company stock. Additionally, the company's CEO Jay Venkatesan directly holds 4.0% of the total shares outstanding.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Angion Biomedica

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Angion Biomedica Corp.. Insiders have a US$16m stake in this US$108m 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

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 9.1%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

It appears to us that public companies own 6.7% of Angion Biomedica. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Angion Biomedica (of which 1 is concerning!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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