A look at the shareholders of EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. Companies that were previously state-owned tend to have fewer insiders.
EyePoint Pharmaceuticals is a smaller company with a market cap of US $ 323 million, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s dig deeper into each type of owner to find out more about EyePoint Pharmaceuticals.
NasdaqGM: Distribution of ownership of the EYPT on October 2, 2021
What does institutional ownership tell us about EyePoint Pharmaceuticals?
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.
EyePoint Pharmaceuticals already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out EyePoint Pharmaceuticals’ past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
NasdaqGM: EYPT Earnings and Revenue Growth October 2, 2021
Our data shows that hedge funds own 11% of EyePoint Pharmaceuticals. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Essex Woodlands Management, Inc. is currently the largest shareholder, with 15% of the shares outstanding. With 10% and 9.7% of shares outstanding, respectively, Ocumension Therapeutics and Franklin Resources, Inc. are the second and third largest shareholders.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider Property of EyePoint Pharmaceuticals
The definition of an insider may differ slightly from country to country, but board members still count. 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.
Our most recent data indicates that insiders own less than 1% of EyePoint Pharmaceuticals, Inc. It appears that board members have no more than $ 1.8 million in shares in the company. $ 323 million. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free summary of insider buying and selling.
General public property
With a 15% stake, the general public has some influence over EyePoint Pharmaceuticals. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private equity firms hold a 20% stake in EyePoint Pharmaceuticals. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
Public enterprise ownership
Public companies currently own 10% of the shares of EyePoint Pharmaceuticals. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves further study.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we discovered 3 warning signs for EyePoint Pharmaceuticals (1 doesn’t suit us very well!) Which you should be aware of before investing here.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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 the mentioned stocks.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.