Institutions own 32% of PLAYSTUDIOS, Inc. (NASDAQ:MYPS) shares but retail investors control 32% of the company
Key Insights
PLAYSTUDIOS' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 8 shareholders own 51% of the company
Every investor in PLAYSTUDIOS, Inc. (NASDAQ:MYPS) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 32% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's delve deeper into each type of owner of PLAYSTUDIOS, beginning with the chart below.
View our latest analysis for PLAYSTUDIOS
What Does The Institutional Ownership Tell Us About PLAYSTUDIOS?
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.
PLAYSTUDIOS already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 PLAYSTUDIOS' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in PLAYSTUDIOS. Looking at our data, we can see that the largest shareholder is the CEO Andrew Pascal with 13% of shares outstanding. MGM Resorts International is the second largest shareholder owning 12% of common stock, and Microsoft Corporation holds about 8.7% of the company stock.
We did some more digging and found that 8 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 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of PLAYSTUDIOS
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.
Our information suggests that insiders maintain a significant holding in PLAYSTUDIOS, Inc.. Insiders have a US$45m stake in this US$314m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Public Company Ownership
Public companies currently own 21% of PLAYSTUDIOS stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand PLAYSTUDIOS better, we need to consider many other factors. Take risks for example - PLAYSTUDIOS has 1 warning sign we think you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
