In This Article:
A look at the shareholders of Inovio Pharmaceuticals, Inc. (NASDAQ:INO) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
While the holdings of individual investors took a hit after last week’s 11% price drop, institutions with their 46% holdings also suffered.
In the chart below, we zoom in on the different ownership groups of Inovio Pharmaceuticals.
View our latest analysis for Inovio Pharmaceuticals
What Does The Institutional Ownership Tell Us About Inovio 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.
We can see that Inovio Pharmaceuticals does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Inovio Pharmaceuticals' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Inovio Pharmaceuticals. The company's largest shareholder is State Street Global Advisors, Inc., with ownership of 13%. With 8.0% and 5.4% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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.
Insider Ownership Of Inovio Pharmaceuticals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.