Exploring Sol-Gel Technologies Ltd. (SLGL) Investor Profile: Who’s Buying and Why?

You're looking at Sol-Gel Technologies Ltd. (SLGL) and asking the right question: who is buying this stock right now, and what exactly is their thesis? Honestly, the investor profile is split between those focused on the clinical pipeline and those reacting to the near-term cash burn. The company just reported a Q3 2025 net loss that widened significantly to $5.9 million, with revenue plummeting to just $0.4 million from $5.4 million a year ago. That's a tough print. Still, institutions like Phoenix Holdings Ltd. and Migdal Insurance & Financial Holdings Ltd. hold millions in shares, representing about 26.18% of the stock, suggesting a belief in the long game. They are betting on the Phase 3 trial for SGT-610, which management believes could at least double its commercial potential if approved for high-frequency Basal Cell Carcinoma (BCC), a massive unmet need. With the stock trading around $35.67 and some analysts maintaining a bold $50.00 price target, the question is whether the clinical upside outweighs the limited cash runway, which is currently projected into the first quarter of 2027. Let's dive into the 13F filings and strategic moves to see which camp is winning the capital allocation battle and why you might join them.

Who Invests in Sol-Gel Technologies Ltd. (SLGL) and Why?

If you're looking at Sol-Gel Technologies Ltd. (SLGL), you're looking at a fascinating, high-conviction investor profile. The direct takeaway is this: the company is overwhelmingly owned by insiders and institutions betting on a long-term pipeline payoff, not current sales. This creates a tight, volatile stock that moves sharply on clinical news.

The ownership structure is highly concentrated, which is typical for a clinical-stage dermatology company. As of the most recent filings in November 2025, a staggering 70% of Sol-Gel Technologies Ltd.'s shares are held by insiders, which means management and founders have serious skin in the game. This leaves the public float small, which is why the stock can be so volatile. Institutional ownership, including mutual funds and pensions, sits at around 20.62% to 26.18% of the shares outstanding.

Key Investor Types and Their Stakes

The investor base for Sol-Gel Technologies Ltd. breaks down into three clear groups, each with a different risk tolerance. The dominance of insiders means they control the company's strategic direction, but the institutional money provides critical validation.

• Insider Investors: Own 70% of the stock. They are the ultimate long-term holders, tied to the success of the core technology and pipeline.
• Institutional Investors: Hold around 20.62%. These are big names like Migdal Insurance & Financial Holdings Ltd., UBS Group AG, and BlackRock, Inc.. They are betting on the commercialization of the approved products and the late-stage pipeline.
• Retail Investors and Hedge Funds: These groups make up the rest of the float. Retail investors are often drawn to the high growth potential in the specialty pharma space, while hedge funds are often looking for short-term trading opportunities around key clinical trial announcements.

Honestly, with a 70% insider stake, you're investing alongside the people who built the company. That's a powerful alignment of interest.

The Core Investment Motivations

Investors aren't buying Sol-Gel Technologies Ltd. for its current revenue, which was only $0.4 million in the third quarter of 2025. They are buying for future growth and pipeline catalysts. The Q3 2025 net loss of $5.9 million confirms this is a pure growth-stage play.

The entire investment thesis hinges on the successful development and commercialization of their proprietary dermatology drugs, particularly those targeting rare conditions. The cash position of $20.9 million as of September 30, 2025, provides a runway into the first quarter of 2027, which is a key metric for managing risk in a biotech company.

Key motivators include:

• Pipeline Catalysts: The Phase 3 clinical trial for SGT-610 (Gorlin syndrome) is ongoing, with top-line results expected in Q4 2026. This is a massive potential value driver.
• Commercial Royalty Growth: The company expects partner-driven royalties from products like EPSOLAY® and TWYNEO® to grow substantially, aiming for roughly $10 million by 2031.
• Market Expansion: Recent deals, like the Viatris licensing agreement for Australia and New Zealand, show a clear path to global revenue streams.

This is a bet on the science, defintely, and the ability of management to execute on their Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).

Investment Strategies in Play

Given the company's profile-high insider ownership, clinical-stage pipeline, and high volatility-investors employ a mix of strategies. The stock's 52-week range of $4.02 to $52.26 tells you everything you need to know about its risk profile.

Here's the quick math: Analysts project an average price target that can go as high as $50.00, a huge upside from the November 2025 price of around $32.74. That kind of spread attracts specific strategies.

The high short-sale ratio, which was 26.10% as of November 18, 2025, also indicates a significant contingent of short-term traders are actively betting against the stock, hoping for a pipeline failure or a delay. This is a high-stakes, high-volatility environment.

Institutional Ownership and Major Shareholders of Sol-Gel Technologies Ltd. (SLGL)

If you're looking at Sol-Gel Technologies Ltd. (SLGL), the first thing you need to understand is that the institutional investor landscape is complex, but ultimately, it's the insider ownership that dominates the story. As of late 2025, institutional ownership sits around 20.62% to 23% of the company's stock, which is a decent slice, but the controlling shareholder holds a massive 70% stake. That means the institutions are important, but they aren't the primary driver of the company's strategic direction.

Top Institutional Investors and Their Shareholdings

The institutional investor profile for Sol-Gel Technologies Ltd. is a mix of Israeli financial powerhouses and smaller US-based funds, reflecting the company's dual-market focus. These funds are buying into the potential of Sol-Gel's approved products, like EPSOLAY® and TWYNEO®, and the pipeline for rare dermatologic diseases.

The latest filings for the 2025 fiscal year show a few key players holding the largest positions. Here's a look at the top institutional holders and their reported stakes, primarily based on the June and September 2025 reporting cycles:

Phoenix Financial Ltd. is defintely the largest institutional holder, with a position of over 247K shares, representing nearly 9% of the outstanding stock as of June 2025. Migdal Insurance & Financial Holdings Ltd. is also a significant player, holding over 122K shares valued at nearly $4 million as of the end of Q3 2025. This tells you that the local market, particularly Israeli financial firms, has a strong conviction in the company.

Recent Shifts in Institutional Ownership

We saw a noticeable shift in institutional sentiment during the second quarter of 2025. The total number of shares held by institutions increased to 658.45K in June 2025, a significant net change of over 388K shares from the prior quarter. This accumulation pushed the collective institutional stake up to 23.6% from 19.0% in March 2025. That's a strong vote of confidence from a quantitative perspective. The buying activity was concentrated in a few key names:

• Phoenix Financial Ltd. was the largest buyer, adding 247.02K shares.
• Migdal Insurance & Financial Holdings Ltd. also added 122.75K shares.
• UBS Group AG increased its position by a whopping 92.623% in Q2 2025.

But it's not all one-way traffic. While many institutions were accumulating, some were trimming or exiting. Morgan Stanley, for example, decreased its holding by over 42% in the same period, and BNP Paribas Financial Markets sold out completely. This is normal portfolio management, but it signals that some large investors are taking profits or reallocating capital due to the stock's massive run-up-the share price jumped from $5.56 in November 2024 to $32.74 by November 2025.

Impact of Institutional Investors on Stock and Strategy

In a typical public company, institutional investors play a critical role, influencing market perception, liquidity, and corporate governance. For Sol-Gel Technologies Ltd., the impact is different because of the unique ownership structure. The company's controlling shareholder, Moshe Arkin, holds approximately 70% of the insider ownership. This high insider ownership means the strategic direction-the focus on advancing the Phase 3 trial of SGT-610 for Gorlin syndrome, for instance-is largely set by the controlling interest, not the institutional minority.

Still, the institutional presence matters for a few reasons. First, their accumulation provides a floor of stability and liquidity, which is crucial for a biotech stock with higher-than-average volatility (a beta of 1.41). Second, their buying activity, especially the significant accumulation in Q2 2025, validates the company's recent strategic moves, like the purchase of EPSOLAY® and TWYNEO® rights in the U.S. from Mayne Pharma. Their confidence is a signal to the broader market. The institutional investors are essentially betting on the long-term success of the pipeline and the company's ability to execute on its Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).

Here's the quick math: with 70% of the company controlled by insiders, the remaining 30% of the float is where the institutions and retail investors play. The institutions owning about 23% of the total stock means they control a substantial portion of the available tradable shares, making their sentiment a major factor in day-to-day price movement. Your action item here is to track the next 13F filings closely; any major selling from the top holders could signal a change in the risk-reward assessment of the company's clinical pipeline.

Key Investors and Their Impact on Sol-Gel Technologies Ltd. (SLGL)

If you want to understand Sol-Gel Technologies Ltd. (SLGL), you have to look past the typical institutional holders and focus on one name: Moshe Arkin. He is the anchor investor, and his massive stake means his influence isn't just significant-it's defintely controlling. This single-investor structure is the most critical factor in the company's investor profile.

Arkin, who also serves as the Executive Chairman, holds an enormous 70% of the company's equity, amounting to 1,950,113 shares. This stake was valued at approximately $67 million as of November 2025. When one person holds this much of the stock, major strategic decisions-from pipeline focus to financing-are largely determined by his vision. It means the company is less susceptible to the short-term noise of the public market, but it also ties the company's fate directly to his long-term commitment and capital strategy. That's a powerful double-edged sword for any investor to consider.

The Institutional Players: Who's Buying and Selling Now?

Beyond the controlling shareholder, the institutional base is smaller but still active, representing about 20.62% of the ownership structure. This group is primarily composed of specialized healthcare funds and insurance giants, and their recent moves in the third quarter of 2025 (Q3 2025) tell a story of cautious optimism following key corporate developments. You can see a full breakdown of the company's trajectory and business model here: Sol-Gel Technologies Ltd. (SLGL): History, Ownership, Mission, How It Works & Makes Money.

The recent Q3 2025 institutional activity shows a clear divergence. Some funds are taking profits or cutting losses, while others are initiating or significantly boosting their positions, signaling confidence in the company's late-stage pipeline, like SGT-610 for Gorlin syndrome. Here's the quick math on the most notable Q3 2025 moves:

• Opaleye Management, Inc.: Added 204,835 shares, a position valued near $5,970,940. They are now a major holder at 5.004% ownership.
• MIGDAL INSURANCE AND FINANCIAL HOLDINGS LTD.: Increased their stake by 122,755 shares, valued around $3,578,308, bringing their total ownership to 4.407%.
• PHOENIX FINANCIAL LTD.: Executed a significant exit, removing 494,040 shares, which was a -100.0% reduction of their prior holding, valued at an estimated $14,401,266.

This institutional churn is normal for a clinical-stage company. The buyers are betting on the long-term value of the pipeline and the recent commercial deals, like the expanded Viatris agreement for EPSOLAY and TWYNEO in Australia and New Zealand. The sellers, like Phoenix, are likely reacting to the near-term financial strain, which included a Q3 2025 net loss of $5.9 million on total revenue of only $0.4 million.

Mapping Risk to Action: How Investor Moves Impact You

The investor profile of Sol-Gel Technologies Ltd. (SLGL) maps directly to its financial runway. As of September 30, 2025, the company had a total cash, cash equivalents, and marketable securities balance of $20.9 million. Management projects this cash will fund operations into the first quarter of 2027.

What this estimate hides is the reliance on key clinical milestones. The stock price, which was around $32.74 per share in November 2025, will swing hard on the Stage 1 results for SGT-210 expected in December 2025 and the Phase 3 results for SGT-610 expected in Q4 2026. The institutional buyers are essentially placing a bet on these data readouts. If the data is positive, the stock moves up; if it's negative, the cash runway shortens, and a dilutive financing round becomes a near-certainty.

Your action, then, is clear: monitor the SEC filings for any further large moves by Opaleye or Migdal, as their accumulation suggests a deep dive into the clinical data. Their conviction acts as a strong external validation of the company's science. But remember, the ultimate control rests with the insider, Moshe Arkin, and his long-term commitment is what matters most for the company's survival and strategic direction.

Market Impact and Investor Sentiment

You're looking at Sol-Gel Technologies Ltd. (SLGL) and wondering if the big money is buying in or heading for the exits, which is the right question to ask for a clinical-stage biotech. The short answer is mixed: while institutional investors are broadly cautious, the company's high insider ownership signals a strong internal belief in the long-term pipeline, and the stock's recent performance has been surprisingly strong.

Overall market sentiment is currently neutral, with the Relative Strength Index (RSI-14) sitting at 54.05 as of November 2025, suggesting the stock isn't overbought or oversold. Still, the stock has climbed a remarkable 284.4% since the start of the year, even after the 1-for-10 reverse share split (a stock consolidation) that took effect on May 5, 2025. That kind of run doesn't happen without some serious conviction from a segment of the market.

Here's the quick math on the ownership structure:

• Insiders hold 66.51% of the stock.
• Institutional investors hold 26.18% of the stock.
• That high insider stake is defintely a bullish sign.

The Institutional Tug-of-War: Who's Buying and Selling?

The institutional investor profile for Sol-Gel Technologies Ltd. (SLGL) shows a clear divergence in strategy, which often happens with companies that have a long cash runway but are still pre-commercial in their lead candidates. In the third quarter of 2025, we saw a significant institutional shift: 16 firms decreased their positions while only 3 firms added shares. This suggests a net reduction in institutional exposure, but the size of the moves tells a deeper story.

For example, Phoenix Financial Ltd. completely removed its position, selling 494,040 shares in Q3 2025. That's a massive exit. But on the flip side, Opaleye Management Inc., a 10% owner, was a major buyer, adding 204,835 shares to their portfolio in the same quarter. This kind of back-and-forth indicates a fundamental disagreement on the risk-reward profile, likely tied to the timing of the clinical trial data for SGT-610, which is expected in late 2026.

The largest institutional holders include:

BlackRock Fund Advisors, one of the biggest names in asset management, held a significant stake, though they did decrease their holdings by 1% in the last reported quarter, selling 15,423 shares. These incremental sales from large index-tracking funds like BlackRock and Vanguard Index Funds (which sold 17,476 shares) are often less about a negative view on the company and more about portfolio rebalancing following the reverse split and subsequent price volatility.

Market Response to Financials and Ownership Shifts

The stock market has reacted to the company's Q3 2025 results with a degree of volatility, but the overall trend has been upward. The stock price was trading at around $36.04 on November 19, 2025, having gained 1.81% on that day alone. This recent momentum is interesting because the Q3 2025 financial results, announced on November 20, 2025, showed a significant drop in revenue to just $0.4 million from $5.4 million in the prior year, and a net loss of $5.9 million. That's a sharp widening of the loss from $0.4 million a year ago. The market is clearly looking past the near-term financials, which is typical for a biotech with a cash runway into the first quarter of 2027 and major pipeline catalysts on the horizon.

The positive market reaction is tied to a few key developments, not just the financial numbers. The announcement of Health Canada's approval of EPSOLAY and the new licensing agreement with Viatris for Australia/New Zealand are seen as de-risking events. The market is essentially saying: the cash burn is expected, but the product pipeline is advancing. If you want to understand the full context of this, you should look at Sol-Gel Technologies Ltd. (SLGL): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives: The $50.00 Question

Wall Street analysts are currently leaning toward a 'wait and see' approach, but with a high price target that suggests substantial upside if the pipeline delivers. The consensus rating from three analysts is a Hold. However, the average 12-month price target is a strong $50.00, which represents a potential upside of nearly 39.86% from the current price of $35.75.

HC Wainwright & Co. is more bullish, issuing a Buy rating on October 27, 2025. This optimism is grounded in the potential of the lead drug candidate, SGT-610, which is in a Phase 3 trial for Gorlin syndrome. Management's plan to explore high-frequency basal cell carcinoma (BCC) as an additional indication for SGT-610 could at least double its commercial potential, and that's what analysts are mapping into their models. The analyst consensus is a nice vote of confidence, but the wide gap between the current price and the target shows the high-risk, high-reward nature of this stock. The stock is a binary play on pipeline success, pure and simple.