Stock Analysis

How Much Of CytomX Therapeutics, Inc. (NASDAQ:CTMX) Do Institutions Own?

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NasdaqGS:CTMX
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If you want to know who really controls CytomX Therapeutics, Inc. (NASDAQ:CTMX), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

CytomX Therapeutics is a smaller company with a market capitalization of US$338m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about CytomX Therapeutics.

See our latest analysis for CytomX Therapeutics

ownership-breakdown
NasdaqGS:CTMX Ownership Breakdown December 29th 2020

What Does The Institutional Ownership Tell Us About CytomX Therapeutics?

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

earnings-and-revenue-growth
NasdaqGS:CTMX Earnings and Revenue Growth December 29th 2020

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 16% of CytomX Therapeutics 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. The company's largest shareholder is BVF Partners LP, with ownership of 10%. BlackRock, Inc. is the second largest shareholder owning 8.9% of common stock, and The Vanguard Group, Inc. holds about 6.2% of the company stock.

We also observed that the top 9 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.

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 CytomX Therapeutics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in CytomX Therapeutics, Inc.. It has a market capitalization of just US$338m, and insiders have US$9.0m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 12% stake in the company, will not 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.

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. For example, we've discovered 2 warning signs for CytomX Therapeutics (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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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