To get a sense of who is truly in control of ABIVAX Société Anonyme (EPA:ABVX), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private equity firms with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And following last week’s 12% decline in share price, private equity firms suffered the most losses.
Let’s take a closer look to see what the different types of shareholders can tell us about ABIVAX Société Anonyme.
Check out the opportunities and risks within the FR Biotechs industry.
What Does The Institutional Ownership Tell Us About ABIVAX Société Anonyme?
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 ABIVAX Société Anonyme does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at ABIVAX Société Anonyme’s earnings history below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in ABIVAX Société Anonyme. Our data shows that Truffle Capital S.A.S. is the largest shareholder with 32% of shares outstanding. With 12% and 10% of the shares outstanding respectively, Sofinnova Partners SAS and TCG Crossover Management, LLC are the second and third largest shareholders.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of ABIVAX Société Anonyme
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.
General Public Ownership
With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ABIVAX Société Anonyme. 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
With an ownership of 69%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand ABIVAX Société Anonyme better, we need to consider many other factors. For example, we’ve discovered 4 warning signs for ABIVAX Société Anonyme (2 shouldn’t be ignored!) that you should be aware of before investing here.
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.
Valuation is complex, but we’re helping make it simple.
Find out whether ABIVAX Société Anonyme is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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.
