Key Insights

• Significant control over Alpha Tau Medical by retail investors implies that the general public has more power to influence management and governance-related decisions

• A total of 25 investors have a majority stake in the company with 42% ownership

• Insiders own 22% of Alpha Tau Medical

To get a sense of who is truly in control of Alpha Tau Medical Ltd. (NASDAQ:DRTS), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual insiders, on the other hand, account for 22% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

In the chart below, we zoom in on the different ownership groups of Alpha Tau Medical.

See our latest analysis for Alpha Tau Medical

What Does The Institutional Ownership Tell Us About Alpha Tau Medical?

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.

As you can see, institutional investors have a fair amount of stake in Alpha Tau Medical. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Alpha Tau Medical, (below). Of course, keep in mind that there are other factors to consider, too.

Alpha Tau Medical is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Uzi Sofer with 17% of shares outstanding. Althera Medical Ltd. is the second largest shareholder owning 15% of common stock, and Medison Ventures holds about 3.9% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Alpha Tau Medical

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.