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A look at the shareholders of Allakos Inc. (NASDAQ:ALLK) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Last week's US$194m market cap gain would probably be appreciated by institutional investors, especially after a year of 95% losses.
In the chart below, we zoom in on the different ownership groups of Allakos.
See our latest analysis for Allakos
What Does The Institutional Ownership Tell Us About Allakos?
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 Allakos. 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 Allakos' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Allakos. Alta Partners LP is currently the largest shareholder, with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.8% and 3.7% of the stock.
After doing some more digging, we found that the top 21 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Allakos
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that insiders own shares in Allakos Inc.. It has a market capitalization of just US$445m, and insiders have US$5.7m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.