Vascular Biogenics Ltd.'s (NASDAQ:VBLT) market cap touched US$101m last week, benefiting both individual investors who own 57% as well as institutions

By
Simply Wall St
Published
March 21, 2022
NasdaqGM:VBLT
Source: Shutterstock

Every investor in Vascular Biogenics Ltd. (NASDAQ:VBLT) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 21% increase in the stock price last week, individual investors profited the most, but institutions who own 14% stock also stood to gain from the increase.

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

View our latest analysis for Vascular Biogenics

ownership-breakdown
NasdaqGM:VBLT Ownership Breakdown March 21st 2022

What Does The Institutional Ownership Tell Us About Vascular Biogenics?

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.

As you can see, institutional investors have a fair amount of stake in Vascular Biogenics. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Vascular Biogenics' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGM:VBLT Earnings and Revenue Growth March 21st 2022

Vascular Biogenics is not owned by hedge funds. Our data shows that The Thai Lee Family Trust is the largest shareholder with 8.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.0% and 5.7% of the stock. Furthermore, CEO Dror Harats is the owner of 1.0% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Vascular Biogenics

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 most recent data indicates that insiders own a reasonable proportion of Vascular Biogenics Ltd.. Insiders have a US$12m stake in this US$101m 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 57% stake in Vascular Biogenics, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

With a stake of 8.0%, private equity firms could influence the Vascular Biogenics 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.

Private Company Ownership

It seems that Private Companies own 8.7%, of the Vascular Biogenics stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vascular Biogenics better, we need to consider many other factors. Take risks for example - Vascular Biogenics has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.