Individual investors are SAB Biotherapeutics, Inc.'s (NASDAQ:SABS) biggest owners and were rewarded after market cap rose by US$535m last week
Key Insights
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SAB Biotherapeutics' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 8 investors have a majority stake in the company with 52% ownership
To get a sense of who is truly in control of SAB Biotherapeutics, Inc. (NASDAQ:SABS), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 40% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, individual investors were the biggest beneficiaries of last week's 844% gain.
In the chart below, we zoom in on the different ownership groups of SAB Biotherapeutics.
Check out our latest analysis for SAB Biotherapeutics
What Does The Institutional Ownership Tell Us About SAB Biotherapeutics?
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.
We can see that SAB Biotherapeutics does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 SAB Biotherapeutics, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 27% of SAB Biotherapeutics. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is RTW Investments, LP, with ownership of 9.9%. BVF Partners L.P. is the second largest shareholder owning 9.9% of common stock, and Commodore Capital LP holds about 7.5% of the company stock. Furthermore, CEO Eddie Sullivan is the owner of 5.7% of the company's shares.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.