What types of shareholders own Mustang Bio, Inc. (NASDAQ: MBIO)?
A look at the shareholders of Mustang Bio, Inc. (NASDAQ: MBIO) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
With a market cap of US $ 214 million, Mustang Bio is a small cap stock, so it may not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s dig deeper into each type of owner, to learn more about Mustang Bio.
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What does institutional ownership tell us about Mustang Bio?
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.
Mustang Bio already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. 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 Mustang Bio’s past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Mustang Bio is not owned by hedge funds. Our data shows that Fortress Biotech, Inc. is the largest shareholder with 17% of the shares outstanding. With 5.4% and 4.9% of shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders. Additionally, CEO Manuel Litchman owns 1.1% of the company’s shares.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Mustang Bio insider property
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 of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that the insiders own shares of Mustang Bio, Inc. In their own name, the insiders own shares worth US $ 4.0 million in the company of US $ 214 million. Some would say it shows the alignment of interests between shareholders and the board. But it might be worth checking out if these insiders have sold.
General public property
The general public collectively owns 51% of the shares of Mustang Bio. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
Public enterprise ownership
State-owned companies currently own 17% of Mustang Bio’s shares. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Mustang Bio, there are many other factors that we need to consider. Consider, for example, the ever-present specter of investment risk. We have identified 4 warning signs with Mustang Bio (at least 2 that cannot be ignored), and understanding them should be part of your investment process.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
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 day 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 any of the stocks mentioned.
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