Wall Street Trader schreef op 11 augustus 2020 12:17:
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Analyst companies(banks) follow particular stocks, industries, companies, markets and produce reports that are often for sale (sometimes for hundreds or even thousands of dollars) or available through a subscription (Bloomberg Terminal) or to particular institutional investors or to the companies the analysts cover.
If you want to understand equity research reports, you have to understand first why banks publish them:
to earn higher commissions from trading activity.A bank wants to encourage institutional investors to buy more shares of the companies it covers. Doing so generates more trading volume and higher commissions for the bank.Analysts often use a variety of terms—buy, strong buy, near-term or long-term accumulate, near-term or long-term over-perform or under-perform, neutral, hold—to describe their recommendations. But the meanings of these terms can differ from firm to firm. Rather than make assumptions, investors should carefully read the definitions of all ratings used in each research report. They should also consider the firm's disclosures regarding what percentage of all ratings fall into either "buy," "hold/neutral," and "sell" categories.
While analysts provide an important source of information in today's markets, investors should understand the potential conflicts of interest analysts might face. For example, some analysts work for firms that underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate.
As a general matter, investors should not rely solely on an analyst's recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
When companies issue new securities, they hire investment bankers for advice on structuring the deal and for help with the actual offering. Underwriting a company's securities offerings and providing other investment banking services can bring in more money for firms than revenues from brokerage operations or research reports.
That's probably why for example Goldman Sachs rated Galapagos stock so low. Because they still hold a grudge against them for not going for their services.
During the NASDAQ IPO of Galapagos in May 2015 Morgan Stanley, Credit Suisse and Cowen and Company were acting as joint book-running managers, and Nomura and Bryan, Garnier & Co. were acting as co-managers, for the global offering. Morgan Stanley was acting as stabilization agent on behalf of the underwriters.
In September 2018, Morgan Stanley and Citigroup were acting as joint book-running managers for the USD 345 million public offering and Kempen acted as Co-Manager to Galapagos.
Guess what!? they are all covering the Galapagos stock in their analyst reports.
What a coincidence! ;-)
This page shows changes in the ownership structure by listing institutions, funds, and major shareholders that have increased their holdings or opened new positions in the last reporting period.Institutional and Fund Ownership - Buyers
fintel.io/sob/us/glpgAnd don't forget to check Dar-win's Shareholders posts;www.iex.nl/Forum/Post/12595970.aspx