New Zealand markets closed
  • NZX 50

    10,753.16
    -115.54 (-1.06%)
     
  • NZD/USD

    0.6164
    -0.0080 (-1.29%)
     
  • NZD/EUR

    0.5904
    -0.0049 (-0.82%)
     
  • ALL ORDS

    6,720.40
    -26.10 (-0.39%)
     
  • ASX 200

    6,539.90
    -28.20 (-0.43%)
     
  • OIL

    108.69
    +2.93 (+2.77%)
     
  • GOLD

    1,790.10
    -17.20 (-0.95%)
     
  • NASDAQ

    11,503.72
    -154.55 (-1.33%)
     
  • FTSE

    7,146.36
    -22.92 (-0.32%)
     
  • Dow Jones

    30,775.43
    -253.88 (-0.82%)
     
  • DAX

    12,748.12
    -35.65 (-0.28%)
     
  • Hang Seng

    21,859.79
    -137.10 (-0.62%)
     
  • NIKKEI 225

    25,935.62
    -457.42 (-1.73%)
     
  • NZD/JPY

    83.3380
    -1.3770 (-1.63%)
     

How Many Biogen Inc. (NASDAQ:BIIB) Shares Do Institutions Own?

·4-min read

If you want to know who really controls Biogen Inc. (NASDAQ:BIIB), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Biogen is a pretty big company. It has a market capitalization of US$29b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Biogen.

View our latest analysis for Biogen

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Biogen?

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 Biogen does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Biogen's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Biogen. Looking at our data, we can see that the largest shareholder is PRIMECAP Management Company with 11% of shares outstanding. With 9.6% and 8.0% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Biogen

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. 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.

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.

Our data suggests that insiders own under 1% of Biogen Inc. in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$64m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in Biogen. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Biogen , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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.

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