Could The Calithera Biosciences, Inc. (NASDAQ:CALA) Ownership Structure Tell Us Something Useful?
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The big shareholder groups in Calithera Biosciences, Inc. (NASDAQ:CALA) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
Calithera Biosciences is a smaller company with a market capitalization of US$161m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Calithera Biosciences.
View our latest analysis for Calithera Biosciences
What Does The Institutional Ownership Tell Us About Calithera Biosciences?
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.
Calithera Biosciences already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Calithera Biosciences' historic earnings and revenue below, but keep in mind there's always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 13% of Calithera Biosciences. 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. PRIMECAP Management Company is currently the largest shareholder, with 14% of shares outstanding. Federated Hermes, Inc. is the second largest shareholder owning 9.0% of common stock, and BlackRock, Inc. holds about 8.7% of the company stock. In addition, we found that Susan Molineaux, the CEO has 0.6% of the shares allocated to their name.
We did some more digging and found that 7 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.