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If you want to know who really controls Achieve Life Sciences, Inc. (NASDAQ:ACHV), then you'll have to look at the makeup of its share registry. With 56% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 43% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's delve deeper into each type of owner of Achieve Life Sciences, beginning with the chart below.
View our latest analysis for Achieve Life Sciences
What Does The Institutional Ownership Tell Us About Achieve Life Sciences?
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 Achieve Life Sciences. 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. 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 Achieve Life Sciences, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Achieve Life Sciences. Our data shows that B. Riley Capital Management, LLC is the largest shareholder with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.6% and 3.1% of the stock.
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.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Achieve Life Sciences
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.