Biohaven Ltd.’s market cap (NYSE:BHVN). fell US$151m. Individual investors who held 55% of Biohaven Ltd. were affected as well as institutions

Biohaven Ltd.’s shareholders.NYSE:BHVN() can help us determine which group is the most powerful. Individual investors hold approximately 55% of the shares, making them the largest group in the company. This means that the investors stand to either gain or lose the most from their investment in the company.

While institutions, who own 24% shares weren’t spared from last week’s US$151m market cap drop, individual investors as a group suffered the maximum losses

Let’s have a closer look at what different types of shareholders have to say about Biohaven.

View our latest analysis for Biohaven

ownership-breakdown

ownership-breakdown

What does the Institutional Ownership tell us about Biohaven?

Many institutions compare their performance to an index that approximates local markets. Companies that are included in major indexes usually get more attention.

Biohaven already has institutions listed on the share registry. They also have a substantial stake in the company. This can be a sign that the company is credible in the investment community. Be wary of relying upon institutional investors for validation. They also sometimes make mistakes. It’s not uncommon for a stock to fall if two institutional investors are trying to sell it at the same moment. It is worth looking at the Biohaven’s past earnings history (below). Keep in mind, however, that there are many other factors to take into account.

earnings-and-revenue-growth

earnings-and-revenue-growth

It appears that hedge funds hold 5.6% of Biohaven’s shares. It is worth noting that hedge funds can be very active investors and may attempt to influence management. Many are looking for value creation (and higher share prices) over the short-term and medium-term. We can see John Childs is the largest shareholder with 8.4% of outstanding shares. The shares held by the second and third largest shareholders are 5.6% and 5.5% respectively. Vladimir Coric, the CEO of the company, holds 3.7% of all outstanding shares.

Our research shows that less than half of company shares are controlled by 25 top shareholders. This implies that shares are widely dispersed and that there is no dominant shareholder.

Researching institutional ownership of a company is a great way to add value to your research. However, it is also a good thing to research analyst recommendations in order to gain a deeper understanding of a stock’s expected performance. The stock is covered by a number of analysts, so it may be worth looking at their collective outlook on the future.

Biohaven Insider Ownership

Although the exact definition of insider is subjective, most people consider board members insiders. The company management runs the business. However, the CEO answers to the board even if he/she is a member.

Insider ownership is generally something I consider a positive thing. It can make it difficult for other shareholders, however, to hold the board responsible for its decisions.

Biohaven Ltd. seems to be controlled by insiders. This US$878m company is owned by insiders. The stake amounts to US$131m. While we would agree that this is an indication of alignment with shareholders it is also worth noting the fact that the company is still small. Some insiders may have even founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

Biohaven’s 55% ownership is owned by the general public. This indicates that it is a popular stock. Investors from the public have a lot of power due to their large ownership. They can influence the decisions regarding executive compensation, dividend policies, and business acquisitions.

Next Steps

It’s fascinating to find out who the owners of a company are. We need to take into account other information in order to gain insight. Learn about the 4 warning signs we’ve spotted with Biohaven (including 3 which are a bit concerning) .

This article will help you find out what future growth analysts have predicted. Free report on analyst forecasts.

NB. The figures in this article are based on data from the past twelve months. These refer to the 12-month period ending with the month that the financial statement was dated. This might not be consistent to full-year figures in the annual report.

Let us know what you think about this article. Have a question about the content? Get in touch Contact us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article is by Simply Wall St. It is general in nature. We only provide commentary on historical data and analyst projections. Our articles are not meant to be considered financial advice. It is not a recommendation not to buy or sell any stocks and does not consider your financial goals. Our goal is to provide you with long-term, focused analysis based on fundamental data. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St does not hold any position in the stocks mentioned.

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