Institutions along with private equity firms who hold considerable shares inCureVac N.V. (NASDAQ:CVAC) come under pressure; lose 3.1% of holdings value

By
Simply Wall St
Published
April 20, 2022
NasdaqGM:CVAC
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A look at the shareholders of CureVac N.V. (NASDAQ:CVAC) can tell us which group is most powerful. With 38% stake, private equity firms possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of private equity firms took a hit after last week’s 3.1% price drop, institutions with their 24% holdings also suffered.

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

See our latest analysis for CureVac

ownership-breakdown
NasdaqGM:CVAC Ownership Breakdown April 20th 2022

What Does The Institutional Ownership Tell Us About CureVac?

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 CureVac 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 CureVac's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGM:CVAC Earnings and Revenue Growth April 20th 2022

We note that hedge funds don't have a meaningful investment in CureVac. Looking at our data, we can see that the largest shareholder is dievini Hopp BioTech holding GmbH & Co. KG with 38% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 8.0%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of CureVac

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.

We can report that insiders do own shares in CureVac N.V.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$317m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in CureVac. 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.

Private Equity Ownership

With a stake of 38%, private equity firms could influence the CureVac board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Public Company Ownership

It appears to us that public companies own 8.0% of CureVac. 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. To that end, you should be aware of the 1 warning sign we've spotted with CureVac .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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