Individual investors account for 31% of Fennec Pharmaceuticals Inc.'s (NASDAQ:FENC) ownership, while hedge funds account for 30%

In This Article:

Key Insights

  • The considerable ownership by individual investors in Fennec Pharmaceuticals indicates that they collectively have a greater say in management and business strategy

  • A total of 6 investors have a majority stake in the company with 53% ownership

  • 23% of Fennec Pharmaceuticals is held by Institutions

Every investor in Fennec Pharmaceuticals Inc. (NASDAQ:FENC) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 31% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, hedge funds make up 30% of the company’s shareholders.

Let's delve deeper into each type of owner of Fennec Pharmaceuticals, beginning with the chart below.

View our latest analysis for Fennec Pharmaceuticals

ownership-breakdown
NasdaqCM:FENC Ownership Breakdown October 29th 2024

What Does The Institutional Ownership Tell Us About Fennec 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.

As you can see, institutional investors have a fair amount of stake in Fennec Pharmaceuticals. 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 Fennec Pharmaceuticals' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqCM:FENC Earnings and Revenue Growth October 29th 2024

It would appear that 30% of Fennec Pharmaceuticals shares are controlled by hedge funds. 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. Southpoint Capital Advisors LP is currently the company's largest shareholder with 15% of shares outstanding. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 8.8% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.