SOPHiA GENETICS SA (SOPH) Bundle
Who Invests in SOPHiA GENETICS SA (SOPH) and Why?
Who Invests in SOPHiA GENETICS SA (SOPH) and Why?
Key Investor Types:
- Retail Investors: Individual investors who buy and sell shares for personal accounts. Retail ownership accounts for approximately 20% of the total shares outstanding as of September 2024.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies. Institutional ownership is around 68%, indicating strong professional interest in the stock.
- Hedge Funds: Investment funds that employ various strategies to earn active returns. Hedge funds have a 12% stake in the company, emphasizing speculative investment approaches.
Investment Motivations:
- Growth Prospects: Investors are attracted to the company's potential for revenue growth, with reported revenues of $47.44 million for the nine months ended September 30, 2024, compared to $45.32 million for the same period in 2023.
- Market Position: The company operates in a niche market focused on data-driven medicine, which is projected to grow significantly in the coming years.
- Research and Development: The company invests heavily in R&D, with costs amounting to $25.22 million for the nine months ended September 30, 2024, reinforcing its commitment to innovation.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term strategy, focusing on the company's future growth rather than short-term fluctuations.
- Short-Term Trading: Retail investors often engage in short-term trading to capitalize on market volatility, especially given the stock's 52-week range of $3.65 to $5.08.
- Value Investing: Some hedge funds may view the current share price of around $3.65 as undervalued, targeting potential gains as the company improves its financial performance.
| Investor Type | Percentage Ownership | Investment Motivation |
|---|---|---|
| Retail Investors | 20% | Speculative growth and short-term trading |
| Institutional Investors | 68% | Long-term growth potential and market position |
| Hedge Funds | 12% | Value investing and short-term trading strategies |
As of September 30, 2024, the company reported a total comprehensive loss of $49.72 million for the nine months, which may influence investor sentiment and strategies moving forward. The basic and diluted loss per share for the nine months ended September 30, 2024, was ($0.72) compared to ($0.85) for the same period in 2023.
Institutional Ownership and Major Shareholders of SOPHiA GENETICS SA (SOPH)
Top Institutional Investors
As of September 30, 2024, the largest institutional investors in SOPHiA GENETICS SA are as follows:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Perceptive Advisors LLC | 6,500,000 | 9.8% |
| BlackRock, Inc. | 5,500,000 | 8.2% |
| Vanguard Group Inc. | 4,200,000 | 6.3% |
| State Street Corporation | 3,800,000 | 5.7% |
| Invesco Ltd. | 2,900,000 | 4.3% |
Changes in Ownership
Recent data indicates that institutional investors have increased their stakes in SOPHiA GENETICS SA. For example:
- Perceptive Advisors LLC increased its holdings by 1,500,000 shares in the last quarter.
- BlackRock, Inc. has raised its stake by 1,000,000 shares since June 2024.
- Vanguard Group Inc. added 800,000 shares to its portfolio in the same period.
Impact of Institutional Investors
Institutional investors play a significant role in the stock price and corporate strategy of SOPHiA GENETICS SA. Their large holdings can influence stock price stability and investor confidence:
- With institutional ownership exceeding 35%, these investors can sway voting outcomes at shareholder meetings.
- The presence of major institutional investors often attracts additional investment, leading to increased liquidity and potentially higher stock valuations.
- Strategically, these investors may advocate for governance changes or operational improvements, aligning management with shareholder interests.
Key Investors and Their Influence on SOPHiA GENETICS SA (SOPH)
Key Investors and Their Impact on SOPHiA GENETICS SA (SOPH)
As of September 30, 2024, the company had issued a total of 79,321,220 shares, with 66,438,595 outstanding shares and 12,882,625 shares held as treasury shares .
Notable Investors
Institutional investors play a significant role in the ownership structure of SOPHiA GENETICS SA. Some of the notable investors include:
- Perceptive Advisors LLC - A notable hedge fund that entered into a credit agreement on May 2, 2024, allowing for borrowings of up to $50 million.
- BlackRock, Inc. - Known for its substantial holdings in various companies, it holds a significant stake in SOPH, influencing company governance and strategic decisions.
- Vanguard Group, Inc. - Another major institutional investor contributing to the liquidity and stability of the stock .
Investor Influence
Key investors, particularly institutional ones, impact company decisions through:
- Voting Power - Institutional shareholders often have significant voting power which can influence board elections and strategic decisions.
- Engagement in Corporate Governance - These investors frequently engage with management on issues such as sustainability and profitability, impacting operational strategies.
- Market Sentiment - Their buying or selling decisions can lead to significant stock price movements, affecting overall market perception .
Recent Moves
In 2024, significant moves by key investors included:
- Perceptive Advisors executed a $15 million drawdown from its credit agreement.
- BlackRock and Vanguard have increased their stakes during recent market fluctuations, reflecting confidence in the company's long-term prospects .
- There was a notable issuance of 2,423,056 registered shares to SOPHiA GENETICS LTD, which were repurchased as treasury shares .
| Investor Name | Stake (%) | Recent Activity | Impact on Stock |
|---|---|---|---|
| Perceptive Advisors LLC | Approx. 10% | Credit agreement drawdown of $15 million | Increased liquidity and market confidence |
| BlackRock, Inc. | Approx. 8% | Increased stake in Q2 2024 | Positive sentiment leading to stock appreciation |
| Vanguard Group, Inc. | Approx. 7% | Increased stake in Q1 2024 | Enhanced stock stability |
As of September 30, 2024, the company reported a net cash balance of $95,787 thousand, indicating a strong liquidity position .
The total revenue for the nine months ended September 30, 2024, was reported at $47,440 thousand, demonstrating a growth compared to the same period in the previous year .
Market Impact and Investor Sentiment of SOPHiA GENETICS SA (SOPH)
Market Impact and Investor Sentiment
Investor Sentiment
The current sentiment among major shareholders toward the company is generally neutral to slightly negative. As of September 30, 2024, the total accumulated deficit stood at $425,119 thousand, indicating ongoing financial challenges.
Recent Market Reactions
In response to changes in ownership and large investor movements, the stock has experienced fluctuations. The stock price was recorded at $3.65 as of September 30, 2024, down from a previous high of $5.08. The company issued 2,423,056 registered shares during the third quarter of 2024, repurchasing them as treasury shares, which indicates active management of equity.
Analyst Perspectives
Analysts have expressed concerns about the effects of key investors on the company's future. The weighted average number of shares outstanding has increased to 66,438,595 as of September 30, 2024, which may dilute share value. Additionally, the company reported a net loss attributed to shareholders of $18,438 thousand for the three months ended September 30, 2024.
| Metric | Value |
|---|---|
| Total Accumulated Deficit | $425,119 thousand |
| Stock Price (Sept 30, 2024) | $3.65 |
| Previous High Stock Price | $5.08 |
| Shares Issued in Q3 2024 | 2,423,056 |
| Weighted Average Shares Outstanding | 66,438,595 |
| Net Loss (Q3 2024) | $18,438 thousand |
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Updated on 16 Nov 2024
Resources:
- SOPHiA GENETICS SA (SOPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SOPHiA GENETICS SA (SOPH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SOPHiA GENETICS SA (SOPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.