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Exscientia Plc's (NASDAQ:EXAI) Market Cap Touched US$613m Last Week, Benefiting Both Individual Investors Who Own 57% as Well as Institutions

Simply Wall St ·  Dec 30, 2022 06:20

A look at the shareholders of Exscientia plc (NASDAQ:EXAI) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week's 14% price gain, institutions also received a 28% cut.

Let's delve deeper into each type of owner of Exscientia, beginning with the chart below.

See our latest analysis for Exscientia

ownership-breakdown
NasdaqGS:EXAI Ownership Breakdown December 30th 2022

What Does The Institutional Ownership Tell Us About Exscientia?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Exscientia already has institutions on the share registry. Indeed, they own a respectable stake in 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 Exscientia, (below). Of course, keep in mind that there are other factors to consider, too.

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NasdaqGS:EXAI Earnings and Revenue Growth December 30th 2022

Hedge funds don't have many shares in Exscientia. With a 15% stake, CEO Andrew Hopkins is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 5.2% and 4.6%, of the shares outstanding, respectively.

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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Exscientia

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems insiders own a significant proportion of Exscientia plc. Insiders own US$95m worth of shares in the US$613m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 57% of Exscientia shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Exscientia better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Exscientia you should be aware of, and 1 of them is a bit unpleasant.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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