What You Need To Know About scPharmaceuticals Inc.'s (NASDAQ:SCPH) Investor Composition
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If you want to know who really controls scPharmaceuticals Inc. (NASDAQ:SCPH), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$135m, scPharmaceuticals is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about scPharmaceuticals.
Check out our latest analysis for scPharmaceuticals
What Does The Institutional Ownership Tell Us About scPharmaceuticals?
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 scPharmaceuticals. 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 scPharmaceuticals' earnings history below. Of course, the future is what really matters.
scPharmaceuticals is not owned by hedge funds. The company's largest shareholder is OrbiMed Advisors LLC, with ownership of 18%. With 13% and 12% of the shares outstanding respectively, 5AM Venture Management, LLC and Lundbeckfond Invest A/S are the second and third largest shareholders.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of scPharmaceuticals
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.