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Every investor in Pernix Therapeutics Holdings,
Inc. (NASDAQ:PTX) should be
aware of the most powerful shareholder groups. Large companies
usually have institutions as shareholders, and we usually see
insiders owning shares in smaller companies. We also tend to see
lower insider ownership in companies that were previously publicly
With a market capitalization of US$26m, Pernix
Therapeutics Holdings is a small cap stock, so it might not be well
known by many institutional investors. Taking a look at the our
data on the ownership groups (below), itâs seems that institutions
are noticeable on the share registry. We can zoom in on the
different ownership groups, to learn more about PTX.
View our latest analysis
for Pernix Therapeutics Holdings
Institutions typically measure themselves against
a benchmark when reporting to their own investors, so they often
become more enthusiastic about a stock once itâs included in a
major index. We would expect most companies to have some
institutions on the register, especially if they are growing.
Pernix Therapeutics Holdings already has
institutions on the share registry. Indeed, they own 8.3% of 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
Pernix Therapeutics Holdings, (below). Of course, keep in mind that
there are other factors to consider, too.
Our data indicates that hedge funds own 7.4% of
Pernix Therapeutics Holdings. 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. Our information suggests
that there isnât any analyst coverage of the stock, so it is
probably little known.
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
Pernix Therapeutics Holdings, Inc. in their own names. It seems the
board members have no more than US$209k worth of shares in the
US$26m company. 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.
The general public, mostly retail investors, hold
a substantial 84% stake in PTX, suggesting it is a fairly popular
stock. This size of ownership gives retail investors collective
power. They can and probably do influence decisions on executive
compensation, dividend policies and proposed business
Itâs always worth thinking about the different
groups who own shares in a company. But to understand Pernix
Therapeutics Holdings better, we need to consider many other
I like to dive deeper into how a
company has performed in the past. You can find historic revenue and
earnings in this detailed graph.
Of course, you might find a fantastic
investment by looking elsewhere. So take a peek at this
free list of interesting
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
To help readers see past the short term
volatility of the financial market, we aim to bring you a long-term
focused research analysis purely driven by fundamental data. Note
that our analysis does not factor in the latest price-sensitive
The author is an independent contributor and at the time of
publication had no position in the stocks mentioned. For errors
that warrant correction please contact the editor at