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A look at the shareholders of Arrowhead Pharmaceuticals, Inc. ( NASDAQ:ARWR ) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Arrowhead Pharmaceuticals has a market capitalization of US$9.2b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below, we can see thatinstitutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Arrowhead Pharmaceuticals.
View our latest analysis for Arrowhead Pharmaceuticals
What Does The Institutional Ownership Tell Us About Arrowhead 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 companies to have some institutions on the register, especially if they are growing.
We can see that Arrowhead Pharmaceuticals does have institutional investors; and they hold a good portion of the company's stock. 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 Arrowhead Pharmaceuticals' earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Arrowhead Pharmaceuticals is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder, with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.8% and 4.4%, of the shares outstanding, respectively.In addition, we found that Christopher Anzalone, the CEO has 2.0% of the shares allocated to their name.
A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
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.