U.S. markets closed
  • S&P 500

    3,678.43
    +92.81 (+2.59%)
     
  • Dow 30

    29,490.89
    +765.38 (+2.66%)
     
  • Nasdaq

    10,815.43
    +239.82 (+2.27%)
     
  • Russell 2000

    1,708.87
    +44.15 (+2.65%)
     
  • Crude Oil

    83.45
    -0.18 (-0.22%)
     
  • Gold

    1,707.40
    +5.40 (+0.32%)
     
  • Silver

    20.72
    +0.13 (+0.64%)
     
  • EUR/USD

    0.9831
    +0.0030 (+0.30%)
     
  • 10-Yr Bond

    3.6510
    -0.1530 (-4.02%)
     
  • GBP/USD

    1.1321
    +0.0155 (+1.39%)
     
  • USD/JPY

    144.5300
    -0.1990 (-0.14%)
     
  • BTC-USD

    19,557.25
    +347.97 (+1.81%)
     
  • CMC Crypto 200

    444.05
    +8.70 (+2.00%)
     
  • FTSE 100

    6,908.76
    +14.95 (+0.22%)
     
  • Nikkei 225

    26,215.79
    +278.58 (+1.07%)
     

What You Need To Know About SentinelOne, Inc.'s (NYSE:S) Investor Composition

·4 min read

If you want to know who really controls SentinelOne, Inc. (NYSE:S), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$7.0b, SentinelOne is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about SentinelOne.

View our latest analysis for SentinelOne

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About SentinelOne?

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 SentinelOne does have institutional investors; and they hold a good portion of the company's stock. 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 SentinelOne's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Our data indicates that hedge funds own 7.8% of SentinelOne. 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. Insight Venture Management, LLC is currently the company's largest shareholder with 12% of shares outstanding. With 9.1% and 7.8% of the shares outstanding respectively, T. Rowe Price Group, Inc. and Third Point LLC are the second and third largest shareholders. Furthermore, CEO Tomer Weingarten is the owner of 1.7% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of SentinelOne

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.

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.

Shareholders would probably be interested to learn that insiders own shares in SentinelOne, Inc.. The insiders have a meaningful stake worth US$170m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 22% stake in SentinelOne. 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 Equity Ownership

With an ownership of 19%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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. For example, we've discovered 4 warning signs for SentinelOne that you should be aware of before investing here.

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.

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