This is what the shareholding structure of Rhythm Biosciences Limited (ASX: RHY) looks like
A look at the shareholders of Rhythm Biosciences Limited (ASX: RHY) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, âShow me the incentive and I’ll show you the result.
Rhythm Biosciences is not a big company by global standards. It has a market cap of A $ 223 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutional investors have not yet purchased much of the company. Let’s dig deeper into each type of owner, to learn more about Rhythm Biosciences.
Check out our latest review for Rhythm Biosciences
What does institutional ownership tell us about the biosciences of rhythm?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Since institutions only own a small portion of Rhythm Biosciences, many may not have spent much time reviewing the inventory. But it is clear that some have; and they liked it enough to buy. If the business strengthens from here, we might see a situation where more institutions are eager to buy. When several institutional investors want to buy stocks, we often see a rise in the price of the stocks. The past income path (shown below) may be an indication of future growth, but there is no guarantee.
Rhythm Biosciences is not owned by hedge funds. Otto Leslie Buttula is currently the largest shareholder in the company with 13% of the shares outstanding. In comparison, the second and third shareholders hold around 9.0% and 5.4% of the capital.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There is a little analyst coverage of the stock, but not a lot. There is therefore room for it to acquire more cover.
Insider Property of Rhythm Biosciences
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 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
It appears that insiders own a significant proportion of Rhythm Biosciences Limited. The insiders have an A $ 88 million stake in the A $ 223 million company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
The general public holds 46% of the capital of Rhythm Biosciences. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
We can see that the private companies own 11% of the issued 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.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Rhythm Biosciences, there are many other factors that we need to consider. For example, we have identified 3 warning signs for Rhythm Biosciences (2 are of concern) that you should be aware of.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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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