Exploring Keros Therapeutics, Inc. (KROS) Investor Profile: Who’s Buying and Why?

You're looking at Keros Therapeutics, Inc. (KROS) and trying to reconcile the high institutional interest with the recent seismic shift in its major holders, right? Honestly, that's the core question after a wild Q4 2025. The investor profile is complex, but the numbers cut through the noise: institutional investors still command a heavy stake, holding over 71% of the stock, with firms like Vanguard Group Inc and BlackRock, Inc. among the largest owners. But here's the twist: the company just completed a massive $375 million capital return program, including a tender offer at $17.75 per share, which facilitated the exit of major shareholders like ADAR1 Capital Management, LLC, who sold over 5.3 million shares. So, why the contradiction-heavy institutional conviction on one side, and a large, strategic exit on the other, even as the company reports a strong cash position of $693.5 million as of September 30, 2025? Are the buyers betting on the clinical pipeline, like the advancing KER-065 for Duchenne muscular dystrophy, or are the sellers simply taking a strategic win at a price point that still reflects a significant drop from the prior year's high of $54.01? Let's unpack the real drivers behind the current ownership structure and what that means for the stock at its November 2025 price of $17.26.

Who Invests in Keros Therapeutics, Inc. (KROS) and Why?

If you're looking at Keros Therapeutics, Inc. (KROS), the first thing you need to know is that this is overwhelmingly an institutional play. As of late 2025, a massive 71.56% of the stock is held by major funds and institutions, not individual retail investors. This means the big money is betting on the biotech pipeline, but the recent stock volatility-a drop from $54.01 a year ago to about $17.26 in November 2025-shows this is a high-stakes, high-risk game.

The investor profile is a mix of long-term growth funds, specialist biotech hedge funds, and a significant portion of corporate insiders. You're defintely not looking at a stable, dividend-paying utility stock here; you're looking at a clinical-stage company where success hinges on drug trial results.

Key Investor Types and Their Footprint

The shareholder base for Keros Therapeutics, Inc. (KROS) is dominated by institutional players, which include mutual funds, hedge funds, and major asset managers. We're talking about 318 institutional owners holding a total of over 39.3 million shares. That's a huge concentration of capital.

The top-tier institutional holders are the names you see everywhere, reflecting passive and index-based strategies, but also active managers making big bets. For example, as of September 30, 2025, Vanguard Group Inc. held over 2.7 million shares, and BlackRock, Inc. held nearly the same amount. This passive money provides a foundational level of demand for the stock, but it's the hedge funds and venture capital (VC) groups that drive the strategic moves.

Venture capital groups like ADAR1 Capital Management and Pontifax Venture Capital have been pivotal, acting as major shareholders and recently participating in a significant capital return. Insider ownership is also substantial, sitting at 20.60%, which is a high number that aligns management's interests with shareholders, but also creates concentrated selling risk.

Here's the quick look at the major institutional players as of Q3 2025:

Investment Motivations: Pipeline and Financial Fortress

The core motivation for buying Keros Therapeutics, Inc. (KROS) is the potential for massive growth tied to its clinical pipeline, not dividends-it pays none. This is a pure biotech growth story, but one now underpinned by a strong balance sheet.

• Pipeline Potential: The lead candidate, KER-050, is now in Phase 3 trials for cytopenias and is partnered with Takeda Pharmaceuticals, which de-risks the program and provides a clear path to market. KER-065, targeting Duchenne muscular dystrophy (DMD), has Orphan Drug designation and is moving to Phase 2.
• Financial Resilience: The company has a significant cash position, reporting $693.5 million in cash and cash equivalents as of September 30, 2025. This cash reserve is projected to fund operations into the first half of 2028, even after accounting for the major capital return. That's a long runway, which is critical for a clinical-stage company.
• Value Opportunity: The stock's sharp decline in 2025 has created a contrarian opportunity. Analysts see a compelling potential upside of about 38.23%, with an average target price of $23.25 compared to the current price of around $17.26.
• Capital Return: The company's decision to return $375 million in excess capital to shareholders, including a recent tender offer of approximately $194.4 million at $17.75 per share, signals a commitment to maximizing shareholder value and shows financial discipline. This is a strong positive signal.

Prevailing Investment Strategies: Long-Term vs. Activist

You see two main strategies at play with Keros Therapeutics, Inc. (KROS) right now. First, you have the long-term growth investors-the mutual funds and biotech specialists-who are essentially buying the potential of the drug pipeline. They are willing to stomach the volatility, betting that a successful Phase 3 readout for KER-050 or positive Phase 2 data for KER-065 will lead to a massive re-rating of the stock. They are in it for the multi-year return on a successful drug launch. To learn more about the company's foundation, you can check out Keros Therapeutics, Inc. (KROS): History, Ownership, Mission, How It Works & Makes Money.

Second, there is a strong element of activist and strategic investing. The recent capital return program was, in part, a response to pressure from major shareholders like ADAR1 Capital Management, who were looking for a clear strategy from the board. These investors often employ a value investing approach, seeing the company's strong cash position and de-risked assets (like the Takeda partnership) as undervalued by the market, especially with the stock trading near its 52-week lows. They push for actions-like the share buyback-to force the stock price to reflect the underlying asset value.

The high short sale ratio of 11.81% also points to a significant number of short-term traders and hedge funds betting against the stock, likely due to the inherent risks of clinical trials and the sharp price decline. The stock is volatile, so short-term momentum and technical trading are definitely a factor, but the long-term story is still the main driver for the majority of the capital.

Institutional Ownership and Major Shareholders of Keros Therapeutics, Inc. (KROS)

If you're looking at Keros Therapeutics, Inc. (KROS), the first thing to grasp is that this is defintely an institutionally-controlled stock. Institutions-the big mutual funds, asset managers like BlackRock, Inc., and hedge funds-hold the vast majority of the company's shares. This means their collective conviction, or lack thereof, is the primary driver of KROS's stock price and strategic direction.

As of the most recent comprehensive filings from the third quarter of 2025, institutional investors controlled approximately 78.76% of the common stock outstanding. That's a huge concentration of ownership, translating to significant power over corporate decisions. The total value of these institutional holdings was around $607.37 million, based on a share price of $17.26 as of mid-November 2025.

Top Institutional Investors and Their Stakes

The shareholder base is dominated by a mix of specialized biotech funds and the largest index fund managers. These top holders are the ones you need to watch, as their moves often signal broader market sentiment for the stock.

Here's the quick math on the top five institutional owners as of September 30, 2025, showing their substantial commitment to KROS:

Notice the presence of both passive giants like Vanguard Group Inc. and BlackRock, Inc., alongside active, concentrated funds such as Adar1 Capital Management LLC. This blend suggests both index-tracking demand and high-conviction, research-driven investment in the company's clinical pipeline.

Recent Shifts in Institutional Ownership

The near-term picture shows a dynamic environment, with both accumulation and significant divestiture. Overall, institutional investors held a total of 39,372,824 shares, which was a slight decrease of about 1.37% in the most recent quarter.

Still, many institutions were increasing their positions. In the first quarter of 2025 alone, Federated Hermes Inc. grew its stake by a massive 882.3%, and Goldman Sachs Group Inc. increased its holdings by 38.3%. Vanguard Group Inc. also continued to buy, increasing its position by 3.311% in the third quarter.

• Buy-side conviction remains strong among several key players.
• The big picture shows a modest net decrease, but the underlying activity is mixed.

What this estimate hides is the impact of the company's tender offer. Keros Therapeutics, Inc. completed a cash tender offer on November 18, 2025, to repurchase 10,950,165 shares at $17.75 per share, totaling approximately $194.4 million. This major capital return program saw large shareholders, including Adar1 Capital Management and Pontifax Management, tender significant portions of their stock, which drastically reduced their overall stake and contributed to the net selling pressure.

Impact on Stock Price and Corporate Strategy

When institutions own over three-quarters of a company, they are the market. Their sheer volume of trading means their buying and selling decisions have a disproportionate, significant influence on the KROS stock price.

More importantly, institutional investors play a direct role in corporate strategy. In April 2025, Keros Therapeutics, Inc. adopted a stockholder rights plan (often called a 'Poison Pill') specifically in response to the rapid accumulation of stock by investors who 'indicated a desire to influence the control of Keros'. This is a concrete example of how the threat of an activist institutional investor can force the Board of Directors to take defensive measures and initiate a strategic review process.

For a deeper dive into the underlying fundamentals that attract this institutional capital, you should check out Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors.

The bottom line for you is that KROS is a stock where institutional sentiment is paramount. A sudden shift in conviction from one or two of the top holders can easily trigger a large price movement, so monitoring their quarterly filings is a necessity.

Key Investors and Their Impact on Keros Therapeutics, Inc. (KROS)

You want to know who is driving the action at Keros Therapeutics, Inc. (KROS) and why, especially after the major capital restructuring in late 2025. The direct takeaway is that institutional investors hold the vast majority of shares, but a recent, significant capital return program fundamentally shifted the shareholder base, moving out two major activist-leaning venture funds and consolidating control among large passive and growth-focused institutions.

Institutional ownership remains exceptionally high, sitting at approximately 77% of the company's stock, though the institutional ownership of outstanding shares was closer to 88.78% as of October 31, 2025. This means a few large funds hold significant sway. The total number of institutional owners is around 318, holding a total of 39,372,824 shares. That's a lot of conviction from professional money managers.

The Notable Players: Who's Buying and Holding

The investor profile for Keros Therapeutics, Inc. is dominated by the usual suspects in the biotech space: major index funds and large hedge funds. These are the funds that provide the stock's core liquidity and stability, or, in the case of hedge funds, the volatility.

As of the end of the third quarter of 2025, the top institutional holders include financial giants like Vanguard Group Inc. and BlackRock, Inc., alongside significant hedge fund presence from firms like D. E. Shaw & Co., Inc. and Goldman Sachs Group Inc. These firms are buying Keros Therapeutics, Inc. because its core pipeline assets, like the Takeda-licensed elritercept, offer a clear path to future milestones and revenue, as detailed in Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors.

Here's a quick look at some of the largest institutional positions as of September 30, 2025:

• Vanguard Group Inc.: Held 2,718,777 shares, up 3.311% in the quarter.
• BlackRock, Inc.: Held 2,717,153 shares.
• Goldman Sachs Group Inc: Increased its stake by 441,923 shares, holding a total of 1,325,483 shares.

Investor Influence and the $375 Million Capital Shift

The real story in 2025 was the power play that led to a massive capital return program, which is a clear example of investor influence translating into concrete corporate action. This move was a direct response to pressure from key shareholders.

The company announced a comprehensive $375 million capital return program in October 2025. This wasn't just a routine buyback; it was a strategic move to address shareholder concerns and streamline governance. The program was split into two parts:

• A targeted repurchase of all common shares from two major shareholders, ADAR1 Capital Management, LLC and Pontifax Venture Capital, totaling approximately $181 million.
• A subsequent issuer tender offer of approximately $194.4 million.

Honestly, this was a clean break. ADAR1 Capital Management, LLC, which was once the largest shareholder, had publicly expressed disappointment with the board for not engaging in strategy discussions. The subsequent repurchase of their 5,389,264 shares for about $95,659,436.00 and the departure of directors associated with both firms effectively ended any public activist campaign. This action removed a source of friction and allowed the company to focus on its clinical pipeline.

Recent Moves: The Oversubscribed Tender Offer

The second part of the capital return program concluded with a cash tender offer that expired on November 18, 2025. The offer was oversubscribed, which means more shares were tendered than the company offered to buy back, showing strong shareholder interest in the liquidity event.

Here's the quick math on the tender offer results, which just finalized in November 2025:

The company accepted 10,950,165 shares at $17.75 per share, representing about 35.91% of the outstanding common stock. This is a massive reduction in the share count, which is defintely a bullish signal for the remaining shareholders, as it instantly increases the proportional ownership of every remaining share. The company funded this entirely with existing cash and cash equivalents, which is a sign of financial strength, even after the $200 million upfront payment from the Takeda global license agreement helped shore up the balance sheet.

Market Impact and Investor Sentiment

You're looking at Keros Therapeutics, Inc. (KROS) and seeing a biotech stock with a lot of noise, and you need to know if the big money is buying or running. Honestly, the investor sentiment is a study in controlled conflict: institutional investors own a huge chunk of the company, but one of the largest shareholders just forced a major capital return.

Overall, institutional ownership stands at about 71.56%, which is heavy interest for a clinical-stage biopharmaceutical company. The general mood is cautiously optimistic, driven by pipeline progress, but the board had to deal with an activist investor. This tells me the smart money is still in, but they're pushing hard for capital discipline and shareholder value now, not just years down the road.

The biggest recent signal came from ADAR1 Capital Management, which was the largest shareholder. They publicly expressed defintely disappointment with the board's lack of engagement on strategy, which was a clear call to action. This pressure led to the company's massive capital return plan, a direct response to shareholder demands for immediate value.

• Institutional Ownership: 71.56% of shares held.
• Major Holders: Vanguard Group Inc, BlackRock, Inc., and ADAR1 Capital Management.
• Insider Ownership: About 20.60% of the stock.

Recent Market Reactions and Ownership Shifts

The market's reaction is a classic case of short-term volatility masking long-term pain. While the stock price gained 26% in the month leading up to mid-November 2025, it was still down a staggering 68% over the preceding twelve months. The recent surge was largely tied to the completion of the company's $375 million capital return program.

This program concluded with a cash tender offer that expired on November 18, 2025, where Keros Therapeutics, Inc. repurchased 10,950,165 shares at $17.75 per share, totaling approximately $194.4 million. This move effectively reduced the share count and provided a floor for the stock price near the tender offer value. It was a huge capital event. The offer was oversubscribed, with a final proration factor of approximately 62.30%, meaning investors wanted to sell more shares back than the company was buying.

The most concrete action came from the major shareholders themselves. As part of the capital return, ADAR1 Capital Management sold 5,389,264 shares and Pontifax Management 4 G.P. sold 4,787,331 shares on October 15, 2025, both at the tender price of $17.75, for a combined value of roughly $180.6 million. This isn't a simple sell-off; it's a planned exit for a significant portion of their stake at a negotiated price, which often signals a shift from an activist position to a more neutral one. You can read more about the context of these moves in the full company profile: Keros Therapeutics, Inc. (KROS): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives on Key Investor Impact

Wall Street analysts are mostly bullish, which is a key counterpoint to the shareholder activism. The consensus rating is a 'Buy' from the 15 analysts covering the stock as of November 2025. The average price target is around $22.10, which suggests a potential upside of about 27.08% from the stock price near the end of November 2025.

Here's the quick math on why they're optimistic: The company reported a Q3 2025 net loss of only $7.3 million, a massive improvement from the $53.0 million net loss in Q3 2024, largely due to revenue recognized from the Takeda license agreement. Plus, they still hold substantial cash and cash equivalents of $693.5 million as of September 30, 2025, even after the $375 million capital return plan.

This financial strength allows them to fund operations into the first half of 2028, giving their drug pipeline, like KER-065 for Duchenne muscular dystrophy, a long runway. The analysts are betting on the pipeline, while the activist investors were pushing for the return of 'excess capital' now. It's a classic value-versus-growth tension.

What this estimate hides is the execution risk inherent in a biotech's clinical trials. The wide range in price targets, from a low of $15.00 to a high of $27.00 in recent reports, shows the high-stakes nature of the pipeline. So, the key action for you is to monitor the Phase 2 trial data releases for KER-065 and KER-050; those will move the stock far more than any institutional trading activity from here.