In the wake of Agenus Inc.'s (NASDAQ:AGEN) latest US$35m market cap drop, institutional owners may be forced to take severe actions

Agenus Inc. +0.17% Post

Agenus Inc.

AGEN

17.73

17.46

+0.17%

-1.52% Post

Key Insights

  • Institutions' substantial holdings in Agenus implies that they have significant influence over the company's share price
  • 50% of the business is held by the top 24 shareholders
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in Agenus Inc. (NASDAQ:AGEN) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, institutional investors endured the highest losses last week after market cap fell by US$35m. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 68% for shareholders. Often called “market movers", institutions wield significant power in influencing the price dynamics of any stock. Hence, if weakness in Agenus' share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors.

Let's delve deeper into each type of owner of Agenus, beginning with the chart below.

See our latest analysis for Agenus

ownership-breakdown
NasdaqCM:AGEN Ownership Breakdown October 30th 2023

What Does The Institutional Ownership Tell Us About Agenus?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Agenus. 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. 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 Agenus, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqCM:AGEN Earnings and Revenue Growth October 30th 2023

Hedge funds don't have many shares in Agenus. Deep Track Capital, LP is currently the company's largest shareholder with 7.9% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.2% and 7.0% of the stock. Additionally, the company's CEO Garo Armen directly holds 0.5% of the total shares outstanding.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 24 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Agenus

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own some shares in Agenus Inc.. It has a market capitalization of just US$297m, and insiders have US$3.4m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Agenus. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 7.9%, private equity firms could influence the Agenus board. 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 Agenus better, we need to consider many other factors. For instance, we've identified 5 warning signs for Agenus (2 are potentially serious) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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