A US$74m drop in the market cap of Greenwich LifeSciences, Inc. (NASDAQ:GLSI) is not what insiders like to see after purchasing shares recently

Key Insights

• Insiders appear to have a vested interest in Greenwich LifeSciences' growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 50% ownership
• Recent purchases by insiders

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A look at the shareholders of Greenwich LifeSciences, Inc. (NASDAQ:GLSI) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And looking at our data, we can see that insiders have bought shares recently. However, with market cap down by US$74m over the last week, their expectations were far from met.

Let's take a closer look to see what the different types of shareholders can tell us about Greenwich LifeSciences.

Check out our latest analysis for Greenwich LifeSciences

What Does The Institutional Ownership Tell Us About Greenwich LifeSciences?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Greenwich LifeSciences already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Greenwich LifeSciences' earnings history below. Of course, the future is what really matters.

Greenwich LifeSciences is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Snehal Patel with 40% of shares outstanding. With 4.5% and 2.9% of the shares outstanding respectively, David McWilliams and Kenneth Hallock are the second and third largest shareholders. Interestingly, the third-largest shareholder, Kenneth Hallock is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Greenwich LifeSciences

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Greenwich LifeSciences, Inc.. This gives them effective control of the company. So they have a US$142m stake in this US$270m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 39% stake in Greenwich LifeSciences. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Greenwich LifeSciences (2 are concerning!) that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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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.