Retail investors are Elicio Therapeutics, Inc.'s (NASDAQ:ELTX) biggest owners and were hit after market cap dropped US$8.5m

Key Insights

• The considerable ownership by retail investors in Elicio Therapeutics indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 47% of the company
• Insiders own 33% of Elicio Therapeutics

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If you want to know who really controls Elicio Therapeutics, Inc. (NASDAQ:ELTX), then you'll have to look at the makeup of its share registry. With 52% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 33% came under pressure after market cap dropped to US$150m last week,retail investors took the most losses.

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

Check out our latest analysis for Elicio Therapeutics

What Does The Institutional Ownership Tell Us About Elicio 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 Elicio 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 Elicio Therapeutics' earnings history below. Of course, the future is what really matters.

Elicio Therapeutics is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yekaterina Chudnovsky with 31% of shares outstanding. With 3.6% and 2.7% of the shares outstanding respectively, Knoll Capital Management and The Vanguard Group, Inc. are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. 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 Elicio Therapeutics

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of Elicio Therapeutics, Inc.. Insiders have a US$49m stake in this US$150m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 52% stake in Elicio Therapeutics, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. Take risks for example - Elicio Therapeutics has 4 warning signs (and 3 which can't be ignored) we think you should know about.

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.