Market cap

Institutions benefited from ObsEva SA’s (NASDAQ: OBSV) market cap rise of $ 19 million last week, but individual investors benefited the most

If you want to know who really controls ObsEva SA (NASDAQ: OBSV), then you will have to look at the makeup of its share register. With 55% of the capital, individual investors hold the maximum number of shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after the market cap hit US $ 179 million last week, while institutions that hold 20% also benefited.

Let’s take a closer look at what different types of shareholders can tell us about ObsEva.

Check out our latest review for ObsEva

NasdaqGS: Distribution of OBSV ownership December 9, 2021

What does institutional ownership tell us about ObsEva?

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

As you can see, institutional investors have a large stake in ObsEva. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out ObsEva’s earnings history below. Of course, the future is what really matters.

profit and revenue growth
NasdaqGS: OBSV Profits and Revenue Growth December 9, 2021

ObsEva is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is HC Wainwright & Co., LLC, Asset Management Arm with 7.4% of the shares outstanding. Meanwhile, the second and third shareholders respectively hold 7.0% and 6.4% of the outstanding shares.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not a lot. There is therefore room for it to acquire more cover.

ObsEva insider property

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders hold shares in ObsEva SA. In their own name, the insiders own US $ 9.4 million shares in the US $ 179 million company. It does at least show some alignment, but we generally like to see larger insider holdings. You can click here to see if these insiders have bought or sold.

General public property

The general public, made up mainly of individual investors, collectively owns 55% of ObsEva shares. This property size gives mainstream investors some collective power. They can and probably do influence decisions about executive compensation, dividend policies and proposed business acquisitions.

Private shareholders

Private equity firms have a 13% stake in ObsEva. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.

Owned by a private company

It appears that private companies own 7.0% of the shares of ObsEva. It might be worth pursuing the matter further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take risks for example – ObsEva has 5 warning signs (and 2 that are of concern) we think you should be aware of.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.