Institutional owners may take dramatic actions as ZIOPHARM Oncology, Inc.'s (NASDAQ:ZIOP) recent 14% drop adds to one-year losses

January 24, 2022
  •  Updated
May 11, 2022
NasdaqGS:TCRT
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Every investor in ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP) should be aware of the most powerful shareholder groups. With 48% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And so it follows that institutional investors was the group most impacted after the company's market cap fell to US$175m last week after a 14% drop in the share price. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 77% might not go down well especially with this category of shareholders. Institutions or "liquidity providers" control large sums of money and therefore, these types of investors usually have a lot of influence over stock price movements. As a result, if the decline continues, institutional investors may be pressured to sell ZIOPHARM Oncology which might hurt individual investors.

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

View our latest analysis for ZIOPHARM Oncology

ownership-breakdown
NasdaqGS:ZIOP Ownership Breakdown January 24th 2022

What Does The Institutional Ownership Tell Us About ZIOPHARM Oncology?

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.

ZIOPHARM Oncology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of ZIOPHARM Oncology, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:ZIOP Earnings and Revenue Growth January 24th 2022

It looks like hedge funds own 13% of ZIOPHARM Oncology shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. BlackRock, Inc. is currently the company's largest shareholder with 7.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 5.8%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 ZIOPHARM Oncology

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.

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 some shares in ZIOPHARM Oncology, Inc.. As individuals, the insiders collectively own US$12m worth of the US$175m company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ZIOPHARM Oncology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for ZIOPHARM Oncology (of which 1 can't be ignored!) you should know about.

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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