With 36% ownership in Invivyd, Inc. (NASDAQ:IVVD), institutional investors have a lot riding on the business

Invivyd, Inc. - Common Stock -3.98%

Invivyd, Inc. - Common Stock

IVVD

1.93

-3.98%

Key Insights

  • Given the large stake in the stock by institutions, Invivyd's stock price might be vulnerable to their trading decisions
  • A total of 5 investors have a majority stake in the company with 53% ownership
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Invivyd, Inc. (NASDAQ:IVVD), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 36% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit US$497m in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 121%.

Let's take a closer look to see what the different types of shareholders can tell us about Invivyd.

View our latest analysis for Invivyd

ownership-breakdown
NasdaqGM:IVVD Ownership Breakdown January 30th 2024

What Does The Institutional Ownership Tell Us About Invivyd?

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 Invivyd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Invivyd's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGM:IVVD Earnings and Revenue Growth January 30th 2024

Our data indicates that hedge funds own 8.4% of Invivyd. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Adimab, LLC is currently the company's largest shareholder with 20% of shares outstanding. Mithril Capital Management LLC is the second largest shareholder owning 10% of common stock, and M28 Capital Management LP holds about 8.4% of the company stock.

On looking further, we found that 53% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Invivyd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 data suggests that insiders own under 1% of Invivyd, Inc. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just US$497m, and the board has only US$2.4m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Invivyd. 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

Private equity firms hold a 23% stake in Invivyd. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 20%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Invivyd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Invivyd , and understanding them should be part of your investment process.

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.

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