To get a sense of who is truly in control of Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of Tabula Rasa HealthCare, beginning with the chart below.
Check out our latest analysis for Tabula Rasa HealthCare
What Does The Institutional Ownership Tell Us About Tabula Rasa HealthCare?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Tabula Rasa HealthCare already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Tabula Rasa HealthCare's earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 27% of Tabula Rasa HealthCare. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Indaba Capital Management, L.P. is currently the largest shareholder, with 27% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 5.6% of common stock, and D. E. Shaw & Co., L.P. holds about 4.6% of the company stock. Furthermore, CEO Brian Adams is the owner of 1.8% of the company's shares.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.