Assembly Biosciences, Inc.'s (NASDAQ:ASMB) market cap touched US$101m last week, benefiting both individual investors who own 50% as well as institutions

By
Simply Wall St
Published
March 23, 2022
NasdaqGS:ASMB
Source: Shutterstock

A look at the shareholders of Assembly Biosciences, Inc. (NASDAQ:ASMB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 50% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched US$101m last week, while institutions who own 41% also benefitted.

In the chart below, we zoom in on the different ownership groups of Assembly Biosciences.

Check out our latest analysis for Assembly Biosciences

ownership-breakdown
NasdaqGS:ASMB Ownership Breakdown March 23rd 2022

What Does The Institutional Ownership Tell Us About Assembly Biosciences?

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

We can see that Assembly Biosciences does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Assembly Biosciences, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:ASMB Earnings and Revenue Growth March 23rd 2022

Our data indicates that hedge funds own 6.2% of Assembly Biosciences. 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. Deep Track Capital, LP is currently the company's largest shareholder with 6.2% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 4.6% of common stock, and Armistice Capital LLC holds about 4.2% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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 stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Assembly Biosciences

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.

We can report that insiders do own shares in Assembly Biosciences, Inc.. It has a market capitalization of just US$101m, and insiders have US$2.3m worth of shares, in their own names. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 50% stake in Assembly Biosciences, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Assembly Biosciences is showing 4 warning signs in our investment analysis , and 1 of those is significant...

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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