U.S. Markets close in 50 mins
  • S&P 500

    3,961.97
    -64.15 (-1.59%)
     
  • Dow 30

    33,848.24
    -498.79 (-1.45%)
     
  • Nasdaq

    11,045.71
    -180.65 (-1.61%)
     
  • Russell 2000

    1,835.06
    -34.13 (-1.83%)
     
  • Crude Oil

    76.94
    +0.66 (+0.87%)
     
  • Gold

    1,739.30
    -14.70 (-0.84%)
     
  • Silver

    20.85
    -0.58 (-2.68%)
     
  • EUR/USD

    1.0339
    -0.0066 (-0.6307%)
     
  • 10-Yr Bond

    3.7050
    +0.0140 (+0.38%)
     
  • Vix

    22.13
    +1.63 (+7.95%)
     
  • GBP/USD

    1.1948
    -0.0142 (-1.1757%)
     
  • USD/JPY

    138.9320
    -0.1680 (-0.1208%)
     
  • BTC-USD

    16,234.30
    -317.24 (-1.92%)
     
  • CMC Crypto 200

    380.57
    +0.28 (+0.07%)
     
  • FTSE 100

    7,474.02
    -12.65 (-0.17%)
     
  • Nikkei 225

    28,162.83
    -120.20 (-0.42%)
     

How Many CalAmp Corp. (NASDAQ:CAMP) Shares Do Institutions Own?

A look at the shareholders of CalAmp Corp. (NASDAQ:CAMP) can tell us which group is most powerful. 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 have been privatized tend to have low insider ownership.

With a market capitalization of US$373m, CalAmp is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about CalAmp.

View our latest analysis for CalAmp

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About CalAmp?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

CalAmp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 CalAmp, (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 7.2% of CalAmp shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that BlackRock, Inc. is the largest shareholder with 15% of shares outstanding. With 7.8% and 7.2% of the shares outstanding respectively, Aristotle Capital Boston, LLC and Trigran Investments, Inc. are the second and third largest shareholders. In addition, we found that Jeffery Gardner, the CEO has 0.6% of the shares allocated to their name.

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.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CalAmp

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

I can report that insiders do own shares in CalAmp Corp.. In their own names, insiders own US$12m worth of stock in the US$373m 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 holds a 19% stake in CalAmp. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 3 warning signs for CalAmp that you should be aware of before investing here.

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.

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.

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