Do institutions own shares of Biomea Fusion, Inc. (NASDAQ: BMEA)?
If you want to know who actually controls Biomea Fusion, Inc. (NASDAQ: BMEA), then you will need to look at the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously public.
Biomea Fusion is not a large company by global standards. It has a market cap of US $ 393 million, which means it wouldn’t get the attention of many institutional investors. In the graph below, we can see that institutional investors have bought into the company. Let’s take a closer look at what different types of shareholders can tell us about Biomea Fusion.
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What does institutional ownership tell us about Biomea Fusion?
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 businesses to have some institutions listed, especially if they are growing.
Biomea Fusion already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Biomea Fusion’s historical revenue and revenue below, but keep in mind that there is always more to tell.
It appears that 11% of Biomea Fusion shares are controlled by hedge funds. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Our data shows that A2A Pharmaceuticals, Inc. is the largest shareholder with 15% of the shares outstanding. Biomea Health, LLC is the second largest shareholder with 15% of the common stock, and Cormorant Asset Management, LLC owns approximately 11% of the company’s stock. Additionally, CEO Thomas Butler owns 1.1% of the company’s shares.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of Biomea Fusion
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that the insiders own shares of Biomea Fusion, Inc. In their own name, the insiders own shares worth $ 7.4 million in the company of $ 393 million. It’s good to see some investments from insiders, but it can be worth checking out if those insiders have bought.
General public property
The general public has a 44% stake in Biomea Fusion. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
With a 7.3% stake, private equity firms could influence Biomea Fusion’s board of directors. Some might like this, as sometimes private capital is activists who hold management accountable. But other times, the private equity sells, after you take the company public.
Owned by a private company
Our data indicates that private companies own 31% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Biomea Fusion (2 of which cannot be ignored!) that you should know.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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