Impel Pharmaceuticals Inc. (NASDAQ:IMPL) stock price fell 12% last week; private equity firms would not be satisfied

Every investor in Impel Pharmaceuticals Inc. (NASDAQ:IMPL) should know the most powerful shareholder groups. We can see that private equity firms hold the lion’s share of the business with 53% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

As the market capitalization fell to $157 million last week, private equity firms would have suffered the highest losses than any other group of shareholders in the company.

In the table below, we zoom in on the different ownership groups of Impel Pharmaceuticals.

If you are not interested in researching the ownership structure of IMPL, we have a free list of interesting investment ideas to potentially inspire your next investment!

NasdaqGM: IMPL Ownership Breakdown September 17, 2022

What does institutional ownership tell us about Impel Pharmaceuticals?

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.

We can see that Impel Pharmaceuticals has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Impel Pharmaceuticals’ past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
NasdaqGM: IMPL Earnings and Revenue Growth September 17, 2022

Hedge funds don’t have a lot of shares in Impel Pharmaceuticals. Our data shows that KKR & Co. Inc. is the largest shareholder with 17% of shares outstanding. The second and third largest shareholders are 5AM Venture Management, LLC and Vivo Capital, LLC, with an equal number of shares in their name at 12%.

Our research also shed light on the fact that approximately 53% of the company is controlled by the 4 major shareholders, suggesting that these owners wield significant influence over the company.

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 ownership of Impel Pharmaceuticals

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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 shares of Impel Pharmaceuticals Inc. In their own name, insiders own $4.0 million worth of stock in the $157 million company. This shows at least some alignment, but we generally like to see larger insider holdings. You can click here to see if these insiders have been buying or selling.

General public property

With a 34% stake, the general public, consisting mainly of individual investors, has some influence over Impel Pharmaceuticals. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Private equity ownership

With a 53% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Know that Impel Pharmaceuticals shows 1 warning sign in our investment analysis you should know…

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.

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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Karen J. Nelson