Canada markets closed
  • S&P/TSX

    19,999.59
    -144.45 (-0.72%)
     
  • S&P 500

    4,166.45
    -55.41 (-1.31%)
     
  • DOW

    33,290.08
    -533.37 (-1.58%)
     
  • CAD/USD

    0.8021
    -0.0073 (-0.90%)
     
  • CRUDE OIL

    71.41
    +0.37 (+0.52%)
     
  • BTC-CAD

    44,488.54
    -2,773.53 (-5.87%)
     
  • CMC Crypto 200

    886.33
    -53.62 (-5.70%)
     
  • GOLD FUTURES

    1,764.60
    -10.20 (-0.57%)
     
  • RUSSELL 2000

    2,237.75
    -49.71 (-2.17%)
     
  • 10-Yr Bond

    1.4500
    -0.0610 (-4.04%)
     
  • NASDAQ

    14,030.38
    -130.97 (-0.92%)
     
  • VOLATILITY

    20.70
    +2.95 (+16.62%)
     
  • FTSE

    7,017.47
    -135.96 (-1.90%)
     
  • NIKKEI 225

    28,964.08
    -54.25 (-0.19%)
     
  • CAD/EUR

    0.6758
    -0.0036 (-0.53%)
     

Here's What Orchard Therapeutics plc's (NASDAQ:ORTX) Shareholder Ownership Structure Looks Like

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls Orchard Therapeutics plc (NASDAQ:ORTX), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Orchard Therapeutics is not a large company by global standards. It has a market capitalization of US$676m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Orchard Therapeutics.

See our latest analysis for Orchard Therapeutics

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Orchard Therapeutics?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Orchard Therapeutics. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Orchard Therapeutics' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

It would appear that 5.6% of Orchard Therapeutics shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is RA Capital Management, L.P., with ownership of 13%. With 10% and 8.2% of the shares outstanding respectively, GlaxoSmithKline plc and Impresa Management LLC are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Orchard Therapeutics

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Orchard Therapeutics plc insiders own under 1% of the company. It seems the board members have no more than US$2.7m worth of shares in the US$676m company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 33% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 21%, private equity firms could influence the Orchard Therapeutics board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Public Company Ownership

Public companies currently own 10% of Orchard Therapeutics stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Orchard Therapeutics that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting