Great week for Nuvectis Pharma, Inc. (NASDAQ:NVCT) insiders who have 63% stake and they haven’t stopped buying

Key Insights

• Significant insider control over Nuvectis Pharma implies vested interests in company growth
• 57% of the business is held by the top 5 shareholders
• Insiders have been buying lately

A look at the shareholders of Nuvectis Pharma, Inc. (NASDAQ:NVCT) can tell us which group is most powerful. With 63% stake, individual insiders 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).

Having purchased shares recently, insiders must be glad after market cap hit US$101m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Nuvectis Pharma.

Check out our latest analysis for Nuvectis Pharma

What Does The Institutional Ownership Tell Us About Nuvectis Pharma?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Nuvectis Pharma. 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 Nuvectis Pharma's earnings history below. Of course, the future is what really matters.

Nuvectis Pharma is not owned by hedge funds. With a 16% stake, CEO Ron Bentsur is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 14% and 12%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nuvectis Pharma

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.

Our information suggests that insiders own more than half of Nuvectis Pharma, Inc.. This gives them effective control of the company. Given it has a market cap of US$101m, that means they have US$63m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nuvectis Pharma better, we need to consider many other factors. Be aware that Nuvectis Pharma is showing 4 warning signs in our investment analysis , and 2 of those are concerning...

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.