Yourgene Health Plc (LON:YGEN)’s recent 13% pullback adds to its one-year losses, institutional owners could take drastic action

If you want to know who really controls Yourgene Health Plc (LON:YGEN), you need to look at the composition of the share register. We can see that institutions own the lion’s share of the company at 39%. In other words, the group is exposed to maximum upside (or downside risk).

As a result, institutional investors suffered their heaviest losses last week after the market cap fell by £11m. The recent loss, which adds to a 24% annual loss for shareholders, may not sit well with this group of investors. Institutions, often referred to as “market makers,” wield significant power in influencing the price momentum of any stock. Consequently, if the downtrend continues, institutions could come under pressure to sell Yourgene Health, which could have a negative impact on individual investors.

Let’s take a closer look at what the different types of shareholders can tell us about Yourgene Health.

Check out our latest analysis for Yourgene Health

AIM:YGEN property breakdown January 27, 2022

What Does Institutional Ownership Tell Us About Yourgene Health?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. As such, they typically consider buying larger companies that are included in the relevant benchmark index.

We can see that Yourgene Health has institutional investors; and they hold a good portion of the company’s stock. 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 is therefore worth checking out Yourgene Health’s earnings history below. Of course, what really matters is the future.

Profit and Revenue Growth
AIM:YGEN Earnings and Revenue Growth January 27, 2022

We find that hedge funds have no meaningful investment in Yourgene Health. Our data suggests Chia-Han Chang, Chan, who is also the company’s senior key executive, holds the most shares at 11%. When an insider owns a significant stake in a company’s stock, investors take that as a positive sign, as it suggests insiders are willing to commit their fortunes to the company’s future. Meanwhile, the second- and third-largest shareholders hold 9.1% and 7.1% of the outstanding shares, respectively.

If we look at the shareholders register, we can see that 51% of ownership is controlled by the 12 largest shareholders, meaning that no single shareholder has a controlling interest in the property.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There’s a little analyst coverage of the stock, but not much. So there is room for more coverage.

Insider ownership of Yourgene Health

The definition of an insider may differ slightly from country to country, but board members always count. Management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Insider ownership is positive when it signals leadership thinks like the true owners of the company. However, a high proportion of insiders can give immense power to even a small group within the organization. This can sometimes be negative.

Our information indicates that insiders hold a significant stake in Yourgene Health Plc. Insiders own £17m worth of shares in the £78m company. We’d say this shows the focus on shareholders, but it’s worth noting that the company is still quite small; Some insiders may have started the company. You can click here to see if these Insiders have bought or sold.

General Public Property

The general public, typically individual investors, own a 23% stake in Yourgene Health. While this ownership size is substantial, it may not be enough to change company policy if the decision is not aligned with other major shareholders.

Private Equity Ownership

With a 15% stake, private equity firms could leverage Yourgene Health’s board of directors. This might encourage some investors, as private equity is sometimes able to promote strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after listing it publicly.

Next Steps:

While it’s worth considering the different groups that own a business, there are other factors that are even more important. You should be aware of this 2 warning signs we discovered with Yourgene Health.

If you’d rather learn what analysts are predicting for future growth, don’t miss this one for free Analyst forecast report.

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.

This Simply Wall St article is of a general nature. We provide commentary 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.

About Nina Snider

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