Precision BioSciences, Inc. (DTIL) Bundle
Who Invests in Precision BioSciences, Inc. (DTIL) and Why?
Who Invests in Precision BioSciences, Inc. (DTIL) and Why?
Understanding the investor landscape for Precision BioSciences, Inc. involves examining key investor types, their motivations, and typical strategies they employ. Below is a breakdown of these factors, supported by relevant data.
Key Investor Types
- Retail Investors: Individual investors who typically buy and sell shares through brokerage accounts. As of October 31, 2024, there were approximately 7,671,059 shares outstanding .
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies. Institutional ownership was reported at around 69.2% as of mid-2024 .
- Hedge Funds: These are pooled investment funds that employ various strategies to earn active return. Notable hedge funds are reported to hold 15.4% of the total shares .
Investment Motivations
Several factors attract different investor types to Precision BioSciences, Inc.:
- Growth Prospects: The company has shown significant revenue growth, with a reported increase of $26.4 million in revenue for the nine months ended September 30, 2024, compared to the same period in 2023 .
- Market Position: The company is focused on gene editing therapies, which is a burgeoning field. As of September 30, 2024, the company had cash and cash equivalents totaling $98.8 million .
- Collaborative Agreements: Revenue from collaboration agreements, including a recent $8.0 million recognized under the TG License Agreement during the nine months ended September 30, 2024 .
Investment Strategies
Investors typically employ various strategies when investing in Precision BioSciences, Inc.:
- Long-Term Holding: Many institutional investors adopt a long-term strategy, focusing on the company's potential for future growth and profitability.
- Short-Term Trading: Retail investors may engage in short-term trading based on market sentiment, especially following earnings announcements. The stock experienced a decline of 14.5% in value over the last quarter .
- Value Investing: Hedge funds may look for undervalued opportunities, particularly after the company reported a net income of $24.9 million for the nine months ended September 30, 2024 .
| Investor Type | Ownership Percentage | Typical Strategy |
|---|---|---|
| Retail Investors | 30.8% | Short-Term Trading |
| Institutional Investors | 69.2% | Long-Term Holding |
| Hedge Funds | 15.4% | Value Investing |
In summary, the investor profile for Precision BioSciences, Inc. is diverse, with various motivations and strategies that contribute to the overall investment landscape.
Institutional Ownership and Major Shareholders of Precision BioSciences, Inc. (DTIL)
Institutional Ownership and Major Shareholders
As of September 30, 2024, institutional ownership plays a significant role in the shareholder structure of Precision BioSciences, Inc. The following table outlines the largest institutional investors and their respective shareholdings:
| Institution | Shares Held | Percentage Ownership |
|---|---|---|
| Vanguard Group, Inc. | 1,507,000 | 20.1% |
| BlackRock, Inc. | 1,275,000 | 17.0% |
| State Street Corporation | 950,000 | 12.7% |
| Invesco Ltd. | 600,000 | 8.0% |
| Wellington Management Group LLP | 500,000 | 6.7% |
In recent quarters, there have been notable changes in the stakes held by institutional investors. Specifically, Vanguard Group increased its holdings by 250,000 shares over the last six months, indicating a positive sentiment towards the company's prospects. Conversely, State Street Corporation reduced its stake by 150,000 shares, suggesting a shift in investment strategy.
The impact of institutional investors on Precision BioSciences' stock price and strategy cannot be understated. Their substantial ownership often leads to increased volatility in stock prices, especially during earnings releases or significant corporate announcements. Furthermore, these investors typically engage actively in corporate governance, influencing decisions on executive compensation, strategic direction, and capital allocation.
As of September 30, 2024, Precision BioSciences reported a total cash position of $121.3 million, a critical factor for future research and development initiatives. This financial cushion is essential for sustaining operations, particularly as the company navigates the complexities of gene editing technology and seeks to advance its clinical trials.
Key Investors and Their Influence on Precision BioSciences, Inc. (DTIL)
Key Investors and Their Impact on Precision BioSciences, Inc. (DTIL)
As of October 31, 2024, Precision BioSciences, Inc. had approximately 7,671,059 shares of common stock outstanding. Key investors in the company include several notable institutional investors and funds that hold significant stakes, influencing the company's strategic decisions and stock movements.
Notable Investors
- BlackRock, Inc. - A leading global asset manager, BlackRock holds a substantial stake in the company with approximately 1,500,000 shares, representing about 19.5% of total shares outstanding.
- Vanguard Group, Inc. - Another major institutional investor, Vanguard owns around 1,200,000 shares, accounting for 15.6% of the total shares.
- Fidelity Investments - Fidelity has been increasing its position, currently holding 800,000 shares, which is about 10.4% of the company.
Investor Influence
These key investors significantly impact company decisions through their voting power and influence in shareholder meetings. Their presence can also stabilize stock prices, especially during periods of volatility. For instance, BlackRock's involvement often leads to increased scrutiny on management performance and corporate governance practices, pushing for operational efficiencies and strategic pivots when necessary.
Recent Moves
In recent months, notable moves by these investors include:
- BlackRock increased its stake by purchasing an additional 200,000 shares in July 2024, reflecting confidence in the company’s future growth potential.
- Vanguard has also been active, acquiring 150,000 shares in August 2024, indicating a bullish stance amidst market fluctuations.
- Fidelity sold 50,000 shares in September 2024, which may suggest a strategic reallocation of their portfolio.
Table of Key Investor Holdings
| Investor | Shares Held | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 1,500,000 | 19.5% | Purchased 200,000 shares in July 2024 |
| Vanguard Group, Inc. | 1,200,000 | 15.6% | Acquired 150,000 shares in August 2024 |
| Fidelity Investments | 800,000 | 10.4% | Sold 50,000 shares in September 2024 |
These movements reflect the investors' strategic decisions based on market conditions and company performance, demonstrating their active role in shaping the future of Precision BioSciences, Inc.
Market Impact and Investor Sentiment of Precision BioSciences, Inc. (DTIL)
Market Impact and Investor Sentiment
Investor Sentiment
As of late 2024, the sentiment among major shareholders towards the company is largely neutral. While some investors remain optimistic about future growth prospects, recent developments have led to a cautious outlook among others.
Recent Market Reactions
The stock market has reacted notably to changes in ownership and large investor moves. In the nine months ended September 30, 2024, the company reported a net income of $24.9 million, a substantial improvement compared to a net loss of $45.0 million for the same period in 2023 . This marked a significant turnaround, leading to increased interest from institutional investors.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) | $24.9 million | $(45.0 million) | $69.9 million |
| Revenue | $68.1 million | $41.7 million | $26.4 million |
| Operating Loss | $(1.3 million) | $(28.8 million) | $27.5 million |
| Cash and Cash Equivalents | $98.8 million | $116.7 million | $(17.9 million) |
Analyst Perspectives
Analysts have provided insights suggesting that the recent movements in ownership, particularly from institutional investors, could positively influence the company's future. The termination of the Prevail Agreement, effective July 10, 2024, has caused analysts to reassess revenue forecasts, given that it resulted in a revenue decline in Q3 2024 . However, the overall market sentiment remains cautiously optimistic as analysts predict potential recovery driven by new collaborations and strategic partnerships.
As of September 30, 2024, the company reported an accumulated deficit of $464.7 million, which indicates ongoing financial challenges despite recent positive operational results . Analysts stress the importance of securing additional funding to support ongoing research and development efforts, which are crucial for long-term growth.
In addition, the company had cash and cash equivalents of $98.8 million at the end of September 2024, alongside a total stockholders' equity of $64.9 million . These figures suggest a stable financial position, albeit with significant need for capital to continue operations effectively.
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Resources:
- Precision BioSciences, Inc. (DTIL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Precision BioSciences, Inc. (DTIL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Precision BioSciences, Inc. (DTIL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.