Could the ownership structure of MiNK Therapeutics, Inc. (NASDAQ:INKT) tell us anything useful?

Every investor in MiNK Therapeutics, Inc. (NASDAQ:INKT) should know the most powerful shareholder groups. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. I like to see at least a little insider ownership. As Charlie Munger said “Show me the incentive and I’ll show you the result”.

MiNK Therapeutics is a small company with a market capitalization of US$106 million, so it may still fly under the radar of many institutional investors. Looking at our data on ownership groups (below), it appears that institutional investors haven’t bought stocks yet. Let’s take a closer look at what different types of shareholders can tell us about MiNK Therapeutics.

Check out our latest analysis for MiNK Therapeutics

distribution of property

What does the lack of institutional ownership tell us about MiNK therapy?

We don’t tend to see institutional investors owning stocks of very risky, lightly traded or very small companies. Although we sometimes see large companies without institutions listed on the register, this is not particularly common.

There are several explanations why institutions do not own stocks. The most common is that the business is too small relative to the funds under management, so the institution doesn’t bother to look closely at the business. Alternatively, there could be something about the company that has kept institutional investors away. MiNK Therapeutics may not have the kind of track record that institutions seek, or maybe they just haven’t studied the business closely.

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Hedge funds don’t have a lot of shares in MiNK Therapeutics. Agenus Inc. is currently the company’s largest shareholder with 79% of the shares outstanding. With such a stake in ownership, we infer that they have significant control over the future of the business. With respectively 6.6% and 0.8% of the outstanding shares, Garo Armen and Brian Corvese are the second and third shareholders. Two of the three main shareholders are respectively Top Key Executive and member of the Board of Directors. In other words, insiders appear higher in the hierarchy of the main shareholders of the company. Additionally, CEO Jennifer Buell owns 0.6% of the company’s stock.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider Property of MiNK Therapeutics

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders hold stock in MiNK Therapeutics, Inc.. Its market capitalization is just US$106 million, and insiders hold US$9.7 million of stock, in their own name. It’s good to see insider investing, but we generally like to see higher insider holdings. It might be worth checking to see if these insiders have bought.

General public property

The general public, who are usually individual investors, hold a 12% stake in MiNK Therapeutics. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

Public companies currently own 79% of the shares of MiNK Therapeutics. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 5 warning signs for MiNK Therapeutics (4 are significant!) that you should be aware of before investing here.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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