Gamida Cell Ltd (fka GMDAQ)

[midastouch017]

Do Institutions Own Gamida Cell Ltd. (NASDAQ:GMDA) Shares?

https://finance.yahoo.com/news/institutions-own-gamida-cell-ltd-105205150.html

The big shareholder groups in Gamida Cell Ltd. (NASDAQ:GMDA) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.

Gamida Cell is not a large company by global standards. It has a market capitalization of US$183m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Gamida Cell.

Check out our latest analysis for Gamida Cell

ownership-breakdown

What Does The Institutional Ownership Tell Us About Gamida Cell?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Gamida Cell already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Gamida Cell, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

Gamida Cell is not owned by hedge funds. FMR LLC is currently the largest shareholder, with 9.1% of shares outstanding. Federated Hermes, Inc. is the second largest shareholder owning 7.9% of common stock, and Novartis AG holds about 7.3% of the company stock.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Gamida Cell
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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

Our data suggests that insiders own under 1% of Gamida Cell Ltd. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just US$183m, and the board has only US$1.2m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Gamida Cell. 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 Company Ownership
It seems that Private Companies own 15%, of the Gamida Cell stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership
It appears to us that public companies own 10% of Gamida Cell. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.