SCHEDULE: FMR LLC Boosts XOMA Royalty Stake to 9.0%

Sentiment:

Beneficial Ownership Report 6 August 2025 12:19 PM

FMR LLC and Abigail P. Johnson have reported a 9.0% beneficial ownership stake in XOMA Royalty Corporation's common stock as of June 30, 2025.

Summary

FMR LLC and Abigail P. Johnson jointly reported beneficial ownership of 1,079,588.14 shares of XOMA Royalty Corporation's common stock.
This represents 9.0% of the total outstanding common stock.
The filing is an Amendment No. 4 to Schedule 13G, indicating an update to a previously reported ownership position.
FMR LLC holds sole voting power over 1,076,547.00 shares and sole dispositive power over 1,079,588.14 shares.
Abigail P. Johnson holds sole dispositive power over 1,079,588.14 shares.
The ownership is reported as of June 30, 2025.

Sentiment

Score: 6

Explanation: The filing indicates a significant, stable ownership stake by a major institutional investor, which is generally a neutral to slightly positive signal of confidence, but provides no operational or financial performance data.

Positives

A major institutional investor, FMR LLC, and its principal, Abigail P. Johnson, maintain a significant 9.0% beneficial ownership stake, indicating continued confidence in XOMA Royalty Corporation.

Negatives

Risks

Future Outlook

Management Comments

The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

This filing reflects a significant ownership position by a major asset manager (FMR LLC, parent of Fidelity) in a company operating in the royalty space, which is common for investment firms seeking exposure to specific revenue streams or intellectual property. Such passive institutional holdings are a standard part of the investment landscape.

Comparison to Industry Standards

FMR LLC, as a large asset management firm, frequently holds significant stakes (over 5%) in publicly traded companies across various sectors, aligning with standard institutional investment practices.
The 9.0% stake in XOMA Royalty Corporation is a substantial passive investment, typical for institutional investors filing Schedule 13G, which certifies that the shares are not held for control purposes.
This level of ownership is comparable to other large institutional holdings reported by firms like BlackRock or Vanguard in similar-sized companies, where passive index or active fund management leads to significant, non-controlling positions.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Ownership Structure Disclosure	FMR LLC is identified as a parent holding company, with its subsidiaries (FIAM LLC, Fidelity Management & Research Company LLC, Strategic Advisers LLC) listed as entities beneficially owning shares. Fidelity Management & Research Company LLC beneficially owns 5% or greater of the outstanding shares.	06/30/2025	Clarifies the corporate structure through which FMR LLC exercises beneficial ownership.
Control Group Disclosure	Members of the Johnson family, including Abigail P. Johnson, are predominant owners of Series B voting common shares of FMR LLC (representing 49% of the voting power) and have a shareholders' voting agreement to vote these shares in accordance with the majority vote. This arrangement is deemed to form a controlling group with respect to FMR LLC under the Investment Company Act of 1940.	06/30/2025	Provides transparency into the ultimate control structure of the reporting entity, FMR LLC.

Related Party Transactions

The filing details the beneficial ownership of XOMA Royalty Corporation's common stock by FMR LLC and Abigail P. Johnson, who serves as a Director, Chairman, and Chief Executive Officer of FMR LLC.
The Johnson family, including Abigail P. Johnson, are predominant owners of FMR LLC's Series B voting common shares and have a voting agreement, establishing a controlling group over FMR LLC.
This structure highlights the related party relationship between the individual (Abigail P. Johnson), the parent entity (FMR LLC), and its subsidiaries, all reporting beneficial ownership of the same securities.

Stakeholder Impact

Shareholders: The disclosure of a significant 9.0% stake by a prominent institutional investor like FMR LLC can provide a level of confidence and stability, potentially influencing investor perception positively.
Management: Awareness of a large, passive institutional holder may influence management's strategic decisions, though the filing explicitly states no intent to influence control.

Key Dates

Date	Description
05/23/2023	Effective date of Power of Attorney for Richard Bourgelas, authorizing signatures on behalf of FMR LLC and Abigail P. Johnson.
08/08/2023	Date of previous Schedule 13G filing by FMR LLC where the Power of Attorney was incorporated by reference.
06/30/2025	Date of event which requires filing of this statement, representing the beneficial ownership reporting date.
08/05/2025	Filing date of the Schedule 13G Amendment No. 4.

Recommendation

hold

This Schedule 13G filing primarily discloses a significant beneficial ownership stake by FMR LLC and Abigail P. Johnson in XOMA Royalty Corporation. While the maintenance of a 9.0% stake by a major institutional investor can be interpreted as a vote of confidence, the filing provides no information regarding the company's financial performance, operational updates, or future prospects. Therefore, based solely on this filing, a seasoned investor would likely maintain their current position (hold) if they already own the stock, as there's no new fundamental information to warrant a change in strategy. For potential new investors, this filing alone is insufficient to make an informed investment decision, requiring further due diligence on XOMA Royalty Corporation's financials and business outlook.

Keywords

XOMA Royalty Corporation, XOMA, FMR LLC, Abigail P. Johnson, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, SEC Filing

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.