Advertisement
U.S. markets close in 5 hours 3 minutes
  • S&P 500

    5,253.64
    +5.15 (+0.10%)
     
  • Dow 30

    39,759.13
    -0.95 (-0.00%)
     
  • Nasdaq

    16,404.50
    +4.97 (+0.03%)
     
  • Russell 2000

    2,126.46
    +12.11 (+0.57%)
     
  • Crude Oil

    82.40
    +1.05 (+1.29%)
     
  • Gold

    2,234.60
    +21.90 (+0.99%)
     
  • Silver

    24.86
    +0.11 (+0.46%)
     
  • EUR/USD

    1.0806
    -0.0023 (-0.22%)
     
  • 10-Yr Bond

    4.1980
    +0.0020 (+0.05%)
     
  • GBP/USD

    1.2640
    +0.0002 (+0.01%)
     
  • USD/JPY

    151.2070
    -0.0390 (-0.03%)
     
  • Bitcoin USD

    71,411.13
    +1,636.90 (+2.35%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,967.93
    +35.95 (+0.45%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

What Kind Of Investors Own Most Of Sarissa Capital Acquisition Corp. (NASDAQ:SRSA)?

Every investor in Sarissa Capital Acquisition Corp. (NASDAQ:SRSA) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Sarissa Capital Acquisition is a smaller company with a market capitalization of US$247m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Sarissa Capital Acquisition.

View our latest analysis for Sarissa Capital Acquisition

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Sarissa Capital Acquisition?

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 Sarissa Capital Acquisition. 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 Sarissa Capital Acquisition, (below). Of course, keep in mind that there are other factors to consider, too.

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

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It would appear that 7.0% of Sarissa Capital Acquisition shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is Sarissa Capital Acquisition Sponsor LLC, with ownership of 20%. For context, the second largest shareholder holds about 7.6% of the shares outstanding, followed by an ownership of 7.0% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Sarissa Capital Acquisition

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 data suggests that insiders own under 1% of Sarissa Capital Acquisition Corp. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than US$59k worth of shares in the US$247m company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 11% 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.

Private Company Ownership

We can see that Private Companies own 20%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Sarissa Capital Acquisition has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

Advertisement