However, high insider ownership can also give immense power to a small group within the company. Insider ownership is positive when it signals leadership are thinking like the true owners of the company.
Notably, sometimes top-level managers are on the board themselves. The company management answer to the board and the latter should represent the interests of shareholders. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. 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. We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
Furthermore, CEO Brian Wong is the owner of 1.7% of the company's shares. The Column Group LLC is the second largest shareholder owning 11% of common stock, and Perceptive Advisors LLC holds about 8.4% of the company stock. is the largest shareholder with 12% of shares outstanding. Hedge funds don't have many shares in RAPT Therapeutics. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. You can see RAPT Therapeutics' historic earnings and revenue below, but keep in mind there's always more to the story. This risk is higher in a company without a history of growth. When such a trade goes wrong, multiple parties may compete to sell stock fast. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. However, it is best to be wary of relying on the supposed validation that comes with institutional investors.
This can indicate that the company has a certain degree of credibility in the investment community. So they generally do consider buying larger companies that are included in the relevant benchmark index.Īs you can see, institutional investors have a fair amount of stake in RAPT Therapeutics. Institutional investors commonly compare their own returns to the returns of a commonly followed index. What Does The Institutional Ownership Tell Us About RAPT Therapeutics? NasdaqGM:RAPT Ownership Breakdown November 3rd 2021 Let's delve deeper into each type of owner, to discover more about RAPT Therapeutics. In the chart below, we can see that institutions are noticeable on the share registry. RAPT Therapeutics has a market capitalization of US$1.0b, so we would expect some institutional investors to have noticed the stock. Companies that have been privatized tend to have low insider ownership. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. (NASDAQ:RAPT) should be aware of the most powerful shareholder groups.
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