Yahoo Finance Recent uptick might appease CrowdStrike Holdings, Inc. (NASDAQ:CRWD) institutional owners after losing 0.9% over the past year
Key Insights
Given the large stake in the stock by institutions, CrowdStrike Holdings' stock price might be vulnerable to their trading decisions
The top 18 shareholders own 50% of the company
To get a sense of who is truly in control of CrowdStrike Holdings, Inc. (NASDAQ:CRWD), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 82% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Institutional investors would appreciate the 10% increase in share prices last week, given their one-year returns have been disappointing at 0.9%.
In the chart below, we zoom in on the different ownership groups of CrowdStrike Holdings.
Check out our latest analysis for CrowdStrike Holdings
What Does The Institutional Ownership Tell Us About CrowdStrike Holdings?
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.
As you can see, institutional investors have a fair amount of stake in CrowdStrike Holdings. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CrowdStrike Holdings' earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in CrowdStrike Holdings. The company's largest shareholder is Eurizon Capital SGR S.p.A., with ownership of 15%. For context, the second largest shareholder holds about 6.1% of the shares outstanding, followed by an ownership of 5.8% by the third-largest shareholder. In addition, we found that George Kurtz, the CEO has 3.3% of the shares allocated to their name.
After doing some more digging, we found that the top 18 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of CrowdStrike Holdings
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
We can report that insiders do own shares in CrowdStrike Holdings, Inc.. Insiders own US$1.7b worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 13% stake in CrowdStrike Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - CrowdStrike Holdings has 2 warning signs we think you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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