What You Need To Know About Investcorp Europe Acquisition Corp I's (NASDAQ:IVCB) Investor Composition
Every investor in Investcorp Europe Acquisition Corp I (NASDAQ:IVCB) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
Investcorp Europe Acquisition Corp I is a smaller company with a market capitalization of US$431m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Investcorp Europe Acquisition Corp I.
See our latest analysis for Investcorp Europe Acquisition Corp I
What Does The Institutional Ownership Tell Us About Investcorp Europe Acquisition Corp I?
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.
Investcorp Europe Acquisition Corp I 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Investcorp Europe Acquisition Corp I's historic earnings and revenue below, but keep in mind there's always more to the story.
Investcorp Europe Acquisition Corp I is not owned by hedge funds. The company's largest shareholder is Europe Acquisition Holdings Limited, with ownership of 16%. Adage Capital Management, L.P. is the second largest shareholder owning 4.6% of common stock, and Saba Capital Management, L.P. holds about 4.2% of the company stock.
After doing some more digging, we found that the top 16 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Investcorp Europe Acquisition Corp I
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can report that insiders do own shares in Investcorp Europe Acquisition Corp I. As individuals, the insiders collectively own US$16m worth of the US$431m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 16%, of the Investcorp Europe Acquisition Corp I stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Investcorp Europe Acquisition Corp I better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Investcorp Europe Acquisition Corp I (including 2 which can't be ignored) .
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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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