To get a sense of who really controls Advanced Oncotherapy plc (LON:AVO), it’s important to understand the company’s ownership structure. And the group holding the biggest piece of the pie are institutions with 40% ownership. That is, the group will benefit most when the stock goes up (or lose most when it goes down).
And institutional investors saw their holdings fall 13% last week. Needless to say, the recent loss, which further adds to shareholders’ one-year loss of 49%, may not go down well with this particular category of shareholders. Institutions or “liquidity providers” control large sums of money and therefore these types of investors usually have a large influence on stock price movements. Consequently, if the downtrend continues, institutions could come under pressure to sell Advanced Oncotherapy, which could have a negative impact on individual investors.
Let’s dive deeper into each type of Advanced Oncotherapy owner, starting with the table below.
Try this chances and risks within the UK medical device industry.
What does institutional ownership tell us about advanced oncotherapy?
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.
We can see that Advanced Oncotherapy has institutional investors; and they hold a good portion of the company’s stock. This may indicate that the company has a certain level of credibility in the investor community. However, it’s best not to rely on the supposed confirmation that comes from institutional investors. They too are sometimes wrong. It’s not uncommon for the stock price to fall sharply when two large institutional investors attempt to sell a stock at the same time. So it’s worth reviewing the earnings history of Advanced Oncotherapy (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds appear to control 6.9% of Advanced Oncotherapy’s stock. This is worth noting as hedge funds are often quite active investors who may be trying to influence management. Many want to see value creation (and a higher share price) in the short or medium term. The company’s largest shareholder is Liquid Harmony Ltd with an 8.6% stake. Philippe Glatz is the second largest shareholder with 8.6% of the common shares and Odey Asset Management LLP holds about 6.9% of the company’s shares.
We have also observed that the top 8 shareholders make up more than half of the share register, with some smaller shareholders balancing the interests of the larger ones to some extent.
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’s a little analyst coverage of the stock, but not much. So there is room for more coverage.
Insider ownership of Advanced Oncotherapy
The definition of an insider may differ slightly from country to country, but board members always count. Management runs the business, but the CEO is accountable to the board even if he or she is a member.
In general, I think insider ownership is a good thing. In some cases, however, it becomes more difficult for other shareholders to hold the board accountable for decisions.
Our information indicates that insiders hold a significant stake in Advanced Oncotherapy plc. It has a market capitalization of just £102m and insiders have £21m worth of shares in their own name. It’s great to see insiders so invested in the business. It might be worth checking if these insiders have bought recently.
General Public Property
With a 13% stake, the general public, which consists mainly of individual investors, has some influence on Advanced Oncotherapy. While this group may not necessarily be in charge, it certainly can have a real impact on how the company is run.
Private company property
Our data shows that private companies own 19% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an interest in a private company rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it is worth noting that this is an area for further research.
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. For example, consider the ever-present specter of investment risk. We have identified 3 warning signs with Advanced Oncotherapy (at least 2 that cannot be ignored) and understanding them should be part of your investment process.
Eventually the future is the most important thing. You can access it free Report on analysts’ forecasts for the company.
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.
The assessment is complex, but we help to simplify it.
find out if Advanced oncotherapy may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
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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.