U.S. markets closed
  • S&P 500

    4,080.11
    +122.48 (+3.09%)
     
  • Dow 30

    34,589.77
    +737.24 (+2.18%)
     
  • Nasdaq

    11,468.00
    +484.22 (+4.41%)
     
  • Russell 2000

    1,886.58
    +50.03 (+2.72%)
     
  • Crude Oil

    80.55
    0.00 (0.00%)
     
  • Gold

    1,787.70
    +27.80 (+1.58%)
     
  • Silver

    22.53
    +0.75 (+3.46%)
     
  • EUR/USD

    1.0433
    +0.0025 (+0.24%)
     
  • 10-Yr Bond

    3.7030
    -0.0450 (-1.20%)
     
  • GBP/USD

    1.2081
    +0.0020 (+0.16%)
     
  • USD/JPY

    137.4450
    -0.6350 (-0.46%)
     
  • BTC-USD

    17,175.30
    +729.15 (+4.43%)
     
  • CMC Crypto 200

    406.06
    +5.37 (+1.34%)
     
  • FTSE 100

    7,573.05
    +61.05 (+0.81%)
     
  • Nikkei 225

    27,968.99
    0.00 (0.00%)
     

Heliogen, Inc.'s (NYSE:HLGN) market cap dropped US$40m last week; Private equity firms bore the brunt

If you want to know who really controls Heliogen, Inc. (NYSE:HLGN), then you'll have to look at the makeup of its share registry. With 43% stake, private equity firms possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 11% decline in share price, private equity firms suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Heliogen.

Check out our latest analysis for Heliogen

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Heliogen?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Heliogen 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 Heliogen, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

We note that hedge funds don't have a meaningful investment in Heliogen. The company's largest shareholder is Nant Capital, LLC, with ownership of 13%. Prime Movers Lab is the second largest shareholder owning 13% of common stock, and NeoTribe Ventures holds about 9.9% of the company stock. Furthermore, CEO William Gross is the owner of 1.1% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Heliogen

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Heliogen, Inc.. In their own names, insiders own US$14m worth of stock in the US$327m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Heliogen. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 43%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Heliogen better, we need to consider many other factors. For instance, we've identified 3 warning signs for Heliogen (2 are a bit concerning) that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here