Owning 58% in SharkNinja, Inc. (NYSE:SN) means that insiders are heavily invested in the company's future
Key Insights
SharkNinja's significant insider ownership suggests inherent interests in company's expansion
CJ Xuning Wang owns 57% of the company
If you want to know who really controls SharkNinja, Inc. (NYSE:SN), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of SharkNinja regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of SharkNinja.
Check out our latest analysis for SharkNinja
What Does The Institutional Ownership Tell Us About SharkNinja?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that SharkNinja does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SharkNinja, (below). Of course, keep in mind that there are other factors to consider, too.
SharkNinja is not owned by hedge funds. The company's largest shareholder is CJ Xuning Wang, with ownership of 57%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 15% and 6.1% of the stock. Furthermore, CEO Mark Adam Barrocas is the owner of 0.9% of the company's shares.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of SharkNinja
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the SharkNinja, Inc. stock. This gives them a lot of power. Insiders own US$3.4b worth of shares in the US$5.8b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.
General Public Ownership
With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SharkNinja. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
With an ownership of 6.1%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand SharkNinja better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with SharkNinja .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.