In the wake of Y-mAbs Therapeutics, Inc.’s (NASDAQ:YMAB) latest US$24m market cap drop, institutional owners may be forced to take severe actions

Any investor in Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) should be aware of the most powerful shareholder groups. We can see that institutions own the lion’s share of the company at 51%. In other words, the group is exposed to maximum upside (or downside risk).

And institutional investors suffered the heaviest losses after the company’s share price fell 11% last week. Needless to say, the recent loss, which further adds to shareholders’ one-year loss of 35%, may not go down well with this particular category of shareholders. Institutions, often referred to as “market makers,” wield significant power in influencing the price momentum of any stock. Therefore, if Y-mAbs Therapeutics’ stock price remains weak, institutional investors may feel compelled to sell the stock, which may not be ideal for retail investors.

Let’s dive deeper into each type of Y-mAbs Therapeutics owners starting with the table below.

Check out our latest analysis for Y-mAbs Therapeutics

What Does Institutional Ownership Tell Us About Y-mAbs Therapeutics?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.

Y-mAbs Therapeutics already has institutions on the share register. In fact, they own a respectable stake in the company. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. If several institutes change their opinion on a stock at the same time, the share price could fall quickly. It’s therefore worth checking out Y-mAbs Therapeutics’ earnings history below. Of course, what really matters is the future.

Institutional investors own over 50% of the company, so collectively they can likely heavily influence board decisions. We find that hedge funds have no meaningful investment in Y-mAbs Therapeutics. Looking at our data, we can see that the largest shareholder is Wg Biotech Aps with 9.6% of outstanding shares. With 7.1% and 5.9% of the outstanding shares, HBM Partners Ltd. and BlackRock, Inc. the second and third largest shareholders. In addition, the company’s CEO, Thomas Gad, directly owns 1.5% of the total outstanding shares.

Upon further examination, we found that more than half of the company’s stock is owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by the smaller ones.

While examining a company’s institutional ownership can add value to your research, it’s also a good practice to research analyst recommendations to gain a deeper understanding of a stock’s expected performance. There are a fair number of analysts covering the stock, so it might be helpful to get their overall view on the future.

Insider ownership of Y-mAbs Therapeutics

While the precise definition of an insider can be subjective, almost everyone considers a board member to be an insider. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.

We can report that insiders own stock of Y-mAbs Therapeutics, Inc. Insiders own $5.4 million worth of stock in the $187 million company in their own name. Some would say this shows an alignment of interests between shareholders and the board, although we generally prefer larger insider holdings. But it might be worth checking to see if those insiders have sold.

General Public Property

With a 25% stake, the general public, made up mostly of individual investors, has some influence over Y-mAbs Therapeutics. While this group may not necessarily be in charge, it certainly can have a real impact on how the company is run.

Private Equity Ownership

With a stake of 12%, private equity houses are able to help shape corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in publicly traded companies. After some time, they may try to sell capital and reallocate it elsewhere.

Private company property

Our data shows that private companies own 9.6% of the company’s shares. It might be worth looking into in more detail. If related parties, such as insiders, have interests in any of these private companies, this should be disclosed in the annual report. Private companies can also have a strategic interest in the company.

Next Steps:

I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. Think of risks, for example. Every company has them and we discovered them 1 Warning Sign for Y-mAbs Therapeutics you should know.

But ultimately it is the future, not the past that determines how well the owners of this business will do. Therefore, we think it’s wise to take a look at this free report that shows whether analysts are predicting a brighter future.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.