To get a sense of who actually controls Thorne HealthTech, Inc. (NASDAQ: THRN), it’s important to understand the company’s ownership structure. And the group that holds the biggest slice of the pie are state-owned companies with 59% ownership. In other words, the group faces the maximum upside potential (or downside risk).
As a result, public companies were the biggest beneficiaries of last week’s 13% gain.
In the table below, we zoom in on the different ownership groups of Thorne HealthTech.
See our latest analysis for Thorne HealthTech
What does institutional ownership tell us about Thorne HealthTech?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Thorne HealthTech has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Thorne HealthTech’s revenue and historical earnings below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Thorne HealthTech. Kirin Holdings Company, Limited is currently the largest shareholder, with 30% of the outstanding shares. With 30% and 10% of the shares outstanding, respectively, Mitsui & Co., Ltd. and Helsinn Holding SA are the second and third shareholders. Additionally, CEO Paul Jacobson owns 6.5% of the company’s stock.
After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence company decisions.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Thorne HealthTech Insider Property
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own shares of Thorne HealthTech, Inc. As individuals, insiders collectively own US$19 million of the US$256 million company. It’s good to see insider investing, but it might be worth checking to see if those insiders have been buying.
General public property
The general public, including retail investors, owns 13% of the company’s capital and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
We can see that private companies hold 10% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
Ownership of a public company
Public companies currently own 59% of the shares of Thorne HealthTech. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 1 warning sign for Thorne HealthTech which you should be aware of before investing here.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
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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.