A look at the shareholders of Fortress Capital Acquisition Corp. (NYSE: FCAX) can tell us which group is more powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares of small companies. Companies that were once state-owned tend to have less insider ownership.
With a market capitalization of US $ 487 million, Fortress Capital Acquisition is a small cap stock, so it might not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Fortress Capital Acquisition.
Read our latest analysis for the Fortress Capital acquisition
What does institutional ownership tell us about the acquisition of Fortress Capital?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. You would expect most businesses to have institutions listed, especially if they are growing.
We can see that Fortress Capital Acquisition has institutional investors; and they own a good portion of the shares of the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Fortress Capital Acquisition’s earnings history below. Of course, it’s the future that really matters.
It appears that 5.5% of Fortress Capital Acquisition shares are controlled by hedge funds. This is interesting, because hedge funds can be quite active and militant. Many are looking for medium-term catalysts that will drive the share price higher. Our data shows that Principal Holdings I, LP is the largest shareholder with 20% of the shares outstanding. For context, the second largest shareholder owns around 5.5% of the outstanding shares, followed by a 1.7% stake by the third largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the shares of the company, which means that the shares of the company are widely distributed and there is no dominant shareholder.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider ownership of Fortress Capital acquisition
The definition of company insiders can be subjective and vary by jurisdiction. Our data reflects individual insiders, at the very least capturing board members. Company management responds to the board and the board must represent the interests of shareholders. Notably, sometimes the senior executives are themselves part of the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Fortress Capital Acquisition Corp .. However, it is possible that insiders have an indirect interest through a more complex structure. It appears that the board of directors owns around US $ 570,000 in shares. This compares to a market cap of 487 million US dollars. Many small business investors prefer to see the board of directors more heavily invested. You can click here to see if these insiders have bought or sold.
General public property
The general public has a 46% stake in Fortress Capital Acquisition. While this size of ownership may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Private company ownership
It appears that private companies own 20% of Fortress Capital Acquisition shares. Private companies can be related parties. Sometimes, insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it should be noted as an additional area of ââresearch.
It is always worth thinking about the different groups that own shares in a company. But to better understand Fortress Capital Acquisition, there are many other factors that we need to consider. Take, for example, the ubiquitous spectrum of investment risk. We have identified 1 warning sign with Fortress Capital Acquisition, and understanding them should be part of your investment process.
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NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St does not have any position in the mentioned stocks.
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