Alpha Cognition Inc. (NASDAQ:ACOG) surges 13%; retail investors who own 46% shares profited along with institutions

editorial-team@simplywallst.com (Simply Wall St)

Thu, Feb 20, 2025, 6:11 AM 4 min read

A look at the shareholders of Alpha Cognition Inc. (NASDAQ:ACOG) can tell us which group is most powerful. The group holding the most number of shares in the company, around 46% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s US$12m market cap gain, institutions too had a 31% share in those profits.

In the chart below, we zoom in on the different ownership groups of Alpha Cognition.

Check out our latest analysis for Alpha Cognition

ownership-breakdown — NasdaqCM:ACOG Ownership Breakdown February 20th 2025

What Does The Institutional Ownership Tell Us About Alpha Cognition?

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.

Alpha Cognition already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Alpha Cognition's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NasdaqCM:ACOG Earnings and Revenue Growth February 20th 2025

It looks like hedge funds own 8.7% of Alpha Cognition shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Solas Capital Management, LLC is the largest shareholder with 8.7% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.1% and 4.7%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 20 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Alpha Cognition

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Alpha Cognition Inc.. Insiders own US$13m worth of shares in the US$102m company. 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

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Alpha Cognition. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Alpha Cognition better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Alpha Cognition you should be aware of, and 4 of them are a bit concerning.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.