Institutional investors control 51% of G1 Therapeutics, Inc. (NASDAQ:GTHX) and were rewarded last week after stock increased 11%
A look at the shareholders of G1 Therapeutics, Inc. (NASDAQ:GTHX) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, institutional investors ended up benefitting the most after the company hit US$711m in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 12%.
Let's delve deeper into each type of owner of G1 Therapeutics, beginning with the chart below.
See our latest analysis for G1 Therapeutics
What Does The Institutional Ownership Tell Us About G1 Therapeutics?
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.
As you can see, institutional investors have a fair amount of stake in G1 Therapeutics. 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 G1 Therapeutics' 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. G1 Therapeutics is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Eshelman Ventures, LLC with 8.0% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.9% and 5.4%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of G1 Therapeutics
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.