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If you want to know who actually controls Centessa Pharmaceuticals Limited (NASDAQ: CNTA), then you will need to look at the makeup of its share register. And the group that holds the biggest slice of the pie are the 51% -owned private equity firms. In other words, the group has everything to gain (or lose the most) from its investment in the business.
While institutions that hold 28% came under pressure after the market cap fell to $ 1.0 billion last week, private equity firms suffered the most losses.
Let’s take a closer look at what different types of shareholders can tell us about Centessa Pharmaceuticals.
Check out our latest review for Centessa Pharmaceuticals
What does institutional ownership tell us about Centessa Pharmaceuticals?
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 businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors own a large stake in Centessa Pharmaceuticals. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Centessa Pharmaceuticals’ past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Centessa Pharmaceuticals. Medicxi Ventures (UK) LLP is currently the largest shareholder in the company with 20% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 11% and 11% of the outstanding shares, respectively.
To make our study more interesting, we found that the 4 main shareholders control more than half of the company, which implies that this group has a considerable influence on the decision-making of the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider property of Centessa Pharmaceuticals
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that the insiders own shares in Centessa Pharmaceuticals Limited. Insiders hold a significant stake worth $ 55 million. Most would see this as a real benefit. If you would like to explore the issue of Insider Alignment, you can click here to see if any Insiders have bought or sold.
General public property
With a 15% stake, the general public, made up mainly of individual investors, has some influence over Centessa Pharmaceuticals. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private shareholders
Private equity firms hold a 51% stake in Centessa Pharmaceuticals. This suggests that they can influence key policy decisions. Some might like this, as sometimes private capital is activists holding management to account. But other times, the private equity sells, after you have taken the company to the stock market.
Next steps:
While it is worth considering the different groups that own a business, there are other factors that are even more important. To this end, you should inquire about the 2 warning signs we spotted with Centessa Pharmaceuticals (including 1 which is of concern).
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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