Yahoo Finance Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) top owners are retail investors with 51% stake, while 45% is held by institutions
Key Insights
The considerable ownership by retail investors in Xeris Biopharma Holdings indicates that they collectively have a greater say in management and business strategy
43% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Xeris Biopharma Holdings, Inc. (NASDAQ:XERS), it is important to understand the ownership structure of the business. With 51% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutions, on the other hand, account for 45% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's take a closer look to see what the different types of shareholders can tell us about Xeris Biopharma Holdings.
Check out our latest analysis for Xeris Biopharma Holdings
What Does The Institutional Ownership Tell Us About Xeris Biopharma Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Xeris Biopharma Holdings does have institutional investors; and they hold a good portion of the company's stock. 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 Xeris Biopharma Holdings' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Xeris Biopharma Holdings. BlackRock, Inc. is currently the company's largest shareholder with 7.1% of shares outstanding. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder. In addition, we found that Paul Edick, the CEO has 1.2% of the shares allocated to their name.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Xeris Biopharma Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can report that insiders do own shares in Xeris Biopharma Holdings, Inc.. As individuals, the insiders collectively own US$13m worth of the US$292m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 51% stake in Xeris Biopharma Holdings, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Xeris Biopharma Holdings better, we need to consider many other factors. For example, we've discovered 3 warning signs for Xeris Biopharma Holdings (1 is a bit unpleasant!) that you should be aware of before investing here.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
