In This Article:
Key Insights
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Given the large stake in the stock by institutions, BioAtla's stock price might be vulnerable to their trading decisions
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The top 19 shareholders own 51% of the company
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Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of BioAtla, Inc. (NASDAQ:BCAB) can tell us which group is most powerful. With 39% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of BioAtla, beginning with the chart below.
See our latest analysis for BioAtla
What Does The Institutional Ownership Tell Us About BioAtla?
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.
We can see that BioAtla does have institutional investors; and they hold a good portion of the company's stock. 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. 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 BioAtla's earnings history below. Of course, the future is what really matters.
It looks like hedge funds own 5.1% of BioAtla 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. Looking at our data, we can see that the largest shareholder is Acorn Bioventures with 8.3% of shares outstanding. For context, the second largest shareholder holds about 5.6% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder. Jay Short, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
After doing some more digging, we found that the top 19 have the combined ownership of 51% 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.