What You Need To Know About QuidelOrtho Corporation's (NASDAQ:QDEL) Investor Composition




  • In Business
  • 2022-08-12 17:27:48Z
  • By Simply Wall St.
 

A look at the shareholders of QuidelOrtho Corporation (NASDAQ:QDEL) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$5.8b, QuidelOrtho is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about QuidelOrtho.

Check out our latest analysis for QuidelOrtho

What Does The Institutional Ownership Tell Us About QuidelOrtho?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that QuidelOrtho does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see QuidelOrtho's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in QuidelOrtho. The Carlyle Group Inc. is currently the company's largest shareholder with 19% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 6.6% of common stock, and T. Rowe Price Group, Inc. holds about 4.9% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of QuidelOrtho

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 most recent data indicates that insiders own less than 1% of QuidelOrtho Corporation. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around US$4.8m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in QuidelOrtho, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

Private equity firms hold a 19% stake in QuidelOrtho. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for QuidelOrtho you should be aware of, and 2 of them make us uncomfortable.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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 figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Booktopia Group Limited (ASX:BKG) insiders placed bullish bets worth AU$11m in the last 12 months
Booktopia Group Limited (ASX:BKG) insiders placed bullish bets worth AU$11m in the last 12 months

Quite a few insiders have dramatically grown their holdings in Booktopia Group Limited ( ASX:BKG ) over the past 12...

Institutional owners may take dramatic actions as Lincoln Electric Holdings, Inc.
Institutional owners may take dramatic actions as Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) recent 7.5% drop adds to one-year losses

Every investor in Lincoln Electric Holdings, Inc. ( NASDAQ:LECO ) should be aware of the most powerful shareholder...

Insiders may be rethinking their US$2.5m Nova Leap Health Corp. (CVE:NLH) investment now that the company has lost CA$3.5m in value
Insiders may be rethinking their US$2.5m Nova Leap Health Corp. (CVE:NLH) investment now that the company has lost CA$3.5m in value

The recent price decline of 13% in Nova Leap Health Corp.'s ( CVE:NLH ) stock may have disappointed insiders who bought...

In the wake of Tate & Lyle plc
In the wake of Tate & Lyle plc's (LON:TATE) latest UK£96m market cap drop, institutional owners may be forced to take severe actions

A look at the shareholders of Tate & Lyle plc ( LON:TATE ) can tell us which group is most powerful. The group holding...

Redbubble Limited (ASX:RBL) has caught the attention of institutional investors who hold a sizeable 41% stake
Redbubble Limited (ASX:RBL) has caught the attention of institutional investors who hold a sizeable 41% stake

A look at the shareholders of Redbubble Limited ( ASX:RBL ) can tell us which group is most powerful. With 41% stake...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business