This is what the shareholding structure of Talis Biomedical Corporation (NASDAQ: TLIS) looks like
The large shareholder groups of Talis Biomedical Corporation (NASDAQ: TLIS) have power over the company. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Talis Biomedical is not a large company by global standards. It has a market cap of US $ 212 million, which means it wouldn’t get the attention of many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different property groups, to find out more about Talis Biomedical.
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What does institutional ownership tell us about Talis Biomedical?
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.
Talis Biomedical already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the Talis Biomedical benefit history below. Of course, the future is what really matters.
Our data indicates that hedge funds own 52% of Talis Biomedical. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. The company’s largest shareholder is Baker Bros. Advisors LP, with a 29% stake. ArrowMark Colorado Holdings, LLC is the second largest shareholder with 23% of the common stock, and Randal Scott owns approximately 6.7% of the company’s stock. Randal Scott, who is the third shareholder, also holds the title of member of the board of directors.
A more detailed study of the register of shareholders showed us that 2 of the main shareholders hold a considerable share of the ownership of the company, through their 52% stake.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at the expected growth quite easily.
Insider property of Talis Biomedical
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of Talis Biomedical Corporation. It has a market capitalization of only US $ 212 million and insiders have shares worth US $ 22 million in their own name. It’s great to see insiders so invested in the business. It might be worth checking out if these insiders have bought recently.
General public property
The general public, with a 12% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
With a 6.0% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
It’s always worth thinking about the different groups that own shares in a company. But to understand Talis Biomedical better, there are many other factors to consider. Consider, for example, the ever-present specter of investment risk. We have identified 2 warning signs with Talis Biomedical, and understanding them should be part of your investment process.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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