Institutional investors in CG Oncology, Inc. (NASDAQ:CGON) must be dismayed after prices dropped by 13% last week

In This Article:

Key Insights

  • Significantly high institutional ownership implies CG Oncology's stock price is sensitive to their trading actions

  • The top 12 shareholders own 52% of the company

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls CG Oncology, Inc. (NASDAQ:CGON), then you'll have to look at the makeup of its share registry. With 45% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Unfortunately, institutional ended up on the other end of the spectrum as market cap fell by US$333m.

Let's take a closer look to see what the different types of shareholders can tell us about CG Oncology.

Check out our latest analysis for CG Oncology

ownership-breakdown
NasdaqGS:CGON Ownership Breakdown July 25th 2024

What Does The Institutional Ownership Tell Us About CG Oncology?

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.

CG Oncology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CG Oncology, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:CGON Earnings and Revenue Growth July 25th 2024

We note that hedge funds don't have a meaningful investment in CG Oncology. Decheng Capital LLC is currently the largest shareholder, with 8.2% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.0% and 6.8%, of the shares outstanding, respectively. Hong Fang Song, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 12 have the combined ownership of 52% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.