Sarepta Therapeutics, Inc. (NASDAQ: SRPT) is largely controlled by institutional shareholders who own 84% of the company

A look at the shareholders of Sarepta Therapeutics, Inc. (NASDAQ: SRPT) can tell us which group is more powerful. And the group that holds the biggest slice of the pie is made up of 84%-owned institutions. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Given the huge amount of money and research capabilities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, having a considerable amount of institutional money invested in a business is often considered a desirable trait.

In the table below, we zoom in on the different ownership groups of Sarepta Therapeutics.

NasdaqGS: SRPT Ownership Breakdown October 9, 2022

What does institutional ownership tell us about Sarepta Therapeutics?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Sarepta Therapeutics has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the past earnings trajectory of Sarepta Therapeutics (below). Of course, keep in mind that there are other factors to consider as well.

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NasdaqGS: SRPT Earnings and Revenue Growth October 9, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Sarepta Therapeutics is not owned by hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.6% of shares outstanding. For context, the second shareholder owns approximately 8.3% of the outstanding shares, followed by a 6.4% ownership by the third shareholder.

A closer look at our ownership figures suggests that the top 12 shareholders hold a combined ownership of 51%, implying that no single shareholder has a majority.

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 a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider Property of Sarepta Therapeutics

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, 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.

We can see that insiders own shares in Sarepta Therapeutics, Inc. Insiders have a significant stake worth $436 million. Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.

General public property

With an 11% stake, the general public, consisting primarily of individual investors, has some influence over Sarepta Therapeutics. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Sarepta Therapeutics, we need to consider many other factors. For example, we have identified 1 warning sign for Sarepta Therapeutics of which you should be aware.

If you prefer to 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 using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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