New Zealand markets close in 3 hours 3 minutes
  • NZX 50

    12,048.03
    +24.57 (+0.20%)
     
  • NZD/USD

    0.6503
    +0.0010 (+0.16%)
     
  • NZD/EUR

    0.5968
    +0.0013 (+0.22%)
     
  • ALL ORDS

    7,716.50
    +28.50 (+0.37%)
     
  • ASX 200

    7,496.40
    +28.10 (+0.38%)
     
  • OIL

    81.17
    +0.16 (+0.20%)
     
  • GOLD

    1,932.60
    +2.60 (+0.13%)
     
  • NASDAQ

    12,051.48
    +236.79 (+2.00%)
     
  • FTSE

    7,761.11
    +16.24 (+0.21%)
     
  • Dow Jones

    33,949.41
    +205.57 (+0.61%)
     
  • DAX

    15,132.85
    +51.21 (+0.34%)
     
  • Hang Seng

    22,566.78
    +522.13 (+2.37%)
     
  • NIKKEI 225

    27,413.84
    +51.09 (+0.19%)
     
  • NZD/JPY

    84.3100
    -0.1040 (-0.12%)
     

With 49% stake, Vir Biotechnology, Inc. (NASDAQ:VIR) seems to have captured institutional investors' interest

If you want to know who really controls Vir Biotechnology, Inc. (NASDAQ:VIR), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 49% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Vir Biotechnology.

View our latest analysis for Vir Biotechnology

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Vir Biotechnology?

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.

We can see that Vir Biotechnology does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Vir Biotechnology, (below). Of course, keep in mind that there are other factors to consider, too.

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

We note that hedge funds don't have a meaningful investment in Vir Biotechnology. SoftBank Investment Advisers (UK) Limited is currently the largest shareholder, with 16% of shares outstanding. With 10% and 9.7% of the shares outstanding respectively, BlackRock, Inc. and Arch Venture Partners, L.P. are the second and third largest shareholders. Furthermore, CEO George Scangos is the owner of 4.2% of the company's shares.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Vir Biotechnology

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in Vir Biotechnology, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$242m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vir Biotechnology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 25% stake in Vir Biotechnology. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Public Company Ownership

Public companies currently own 6.4% of Vir Biotechnology stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Be aware that Vir Biotechnology is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here