To understand who really controls Ambrx Biopharma Inc. (NYSE:AMAM), it is important to understand the ownership structure of the business. The group with the largest piece of the pie is a private equity firm with 37% ownership. In other words, the group stands to gain (or lose) the most from its investment in the company.
Private equity firms were the biggest gainers following last week’s 773% rally in stocks, but institutional investors with 21% stakes also stood to benefit from the rally.
Let’s take a closer look at what different types of shareholders can tell us about Ambrx Biopharma.
See the latest analysis from Ambrx Biopharma
What can institutional ownership tell you about Ambrx Biopharma?
Institutional investors typically compare their returns to those of commonly followed indices. As such, they typically look to acquire large companies included in the relevant benchmark index.
As you can see, institutional investors have a sizeable stake in Ambrx Biopharma. This may indicate that the company has some credibility in the investment community. However, caution should be exercised in relying on the validation that institutional investors assume. They get it wrong sometimes too. When two large institutional investors try to sell their shares at the same time, it’s not uncommon for the stock price to drop significantly. As such, it’s worth reviewing Ambrx Biopharma’s historical earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
A hedge fund appears to own 18% of Ambrx Biopharma shares. This catches my attention because hedge funds sometimes try to influence management or make changes that create short-term value for shareholders. Looking at the data, the largest shareholder is HOPU Jinghua (Beijing) Investment Consultancy Co., Ltd., which accounts for his 14% of the outstanding shares. Cormorant Asset Management, LP, and FMR LLC, which own 12% and 9.3% of the outstanding shares respectively, are his second and third largest shareholders.
To make our research more interesting, we found that the top five shareholders control over half of the company. This means that this group has considerable influence over company decision-making.
Researching institutional ownership of companies can add value to your research, but it’s also a good idea to research analyst recommendations to get a better understanding of the stock’s expected performance. . Quite a few analysts cover stocks, so it’s very easy to look up forecast growth.
Insider Ownership of Ambrx Biopharma
The definition of an insider may vary slightly from country to country, but board members are always important. The company’s management runs the business, but the CEO answers the board even though he is a member of the board.
I usually think insider ownership is a good thing. However, in some cases, it becomes more difficult for other shareholders to hold the board accountable for decision making.
Our data suggests that insiders own less than 1% of Ambrx Biopharma Inc. in their own name. The board appears to own approximately US$1 million worth of stock. This compares to a market capitalization of US$175 million. Many people tend to prefer boards that hold more shares. A good next step is to check out this free overview of insider buying and selling.
general public
The general public, usually private investors, own 15% of Ambrx Biopharma. Ownership of this magnitude may not be enough to move policy decisions in their favor, but they can still collectively influence company policy.
Private equity ownership
With 37% ownership, the private equity firm is well positioned to play a role in shaping corporate strategy focused on value creation. Some investors may find this encouraging, as private equity can facilitate strategies that help the market understand the value of a company. Alternatively, their holders may exit their investments after the public offering.
public company ownership
A public company appears to own 8.0% of Ambrx Biopharma. This may be of strategic interest and the two companies may have related business interests. They may have broken up. This retention is probably worth further investigation.
Next step:
It’s always worth thinking about the different groups that own shares in the company. However, many other factors must be considered to better understand Ambrx Biopharma. Consider, for example, the ever-present specter of investment risk. Identified 3 warning signs Ambrx Biopharma (at least one of which is important) and understanding them should be part of the investment process.
Finally the future is the most important. You can access this freedom A report on the company’s analyst forecasts.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
Valuation is complicated, but we’re here to help make it simple.
find out if Ambrx Biopharma You may be overestimated or underestimated by checking out our comprehensive analysis including: Fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
