Do Directors Own Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Shares?

The big shareholder groups in Sangamo Therapeutics, Inc. (NASDAQ:SGMO) have power over the company. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Sangamo Therapeutics has a market capitalization of US$987m, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it’s seems that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about SGMO.

View our latest analysis for Sangamo Therapeutics

NasdaqGS:SGMO Ownership Summary, March 7th 2019
NasdaqGS:SGMO Ownership Summary, March 7th 2019

What Does The Institutional Ownership Tell Us About Sangamo Therapeutics?

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.

We can see that Sangamo Therapeutics does have institutional investors; and they hold 63% of the 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 Sangamo Therapeutics’s earnings history, below. Of course, the future is what really matters.

NasdaqGS:SGMO Income Statement, March 7th 2019
NasdaqGS:SGMO Income Statement, March 7th 2019

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Sangamo Therapeutics is not owned by hedge funds. 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 Sangamo Therapeutics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Sangamo Therapeutics, Inc.. It has a market capitalization of just US$987m, and the board has only US$2.3m worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 36% ownership, the general public have some degree of sway over SGMO. 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:

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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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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