Each investor in Inflection Point Acquisition Corp. (NASDAQ: IPAX) should know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decline in insider participation in companies that were previously public.
With a market capitalization of US$399 million, Inflection Point Acquisition is a small-cap stock, so it may not be familiar to many institutional investors. Our analysis of company ownership, below, shows that institutional investors have bought the company. We can zoom in on the different ownership groups, to learn more about inflection point acquisition.
What does institutional ownership tell us about inflection point acquisition?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
As you can see, institutional investors have a sizeable stake in Inflection Point Acquisition. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the Inflection Point Acquisition Earnings History below. Of course, the future is what really matters.
Reportedly, 53% of Inflection Point Acquisition’s shares are controlled by hedge funds. This is interesting because hedge funds can be very active and militant. Many are looking for medium-term catalysts that will drive the stock price higher. The company’s largest shareholder is Kingstown Capital Management, LP, with a 27% stake. The second and third largest shareholders are LMR Partners LLP and Hudson Bay Capital Management LP, with an equal number of shares to their name at 7.0%.
Looking further, we found that 53% of the shares are held by the top 5 shareholders. In other words, these shareholders have a say in the decisions of the company.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider Property of Inflection Point Acquisition
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our data does not allow us to confirm that the members of the board of directors personally hold shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.
General public property
The general public, who are generally individual investors, hold a 16% stake in Inflection Point Acquisition. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
While it is worth considering the different groups that own a business, there are other, even more important factors. To do this, you need to find out about the 3 warning signs we spotted with Inflection Point Acquisition (including 2 that should not be overlooked) .
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.