U.S. Markets closed
  • S&P Futures

    3,814.00
    -7.25 (-0.19%)
     
  • Dow Futures

    30,955.00
    -44.00 (-0.14%)
     
  • Nasdaq Futures

    11,666.50
    -24.50 (-0.21%)
     
  • Russell 2000 Futures

    1,718.50
    -2.90 (-0.17%)
     
  • Crude Oil

    110.09
    +0.31 (+0.28%)
     
  • Gold

    1,822.40
    +4.90 (+0.27%)
     
  • Silver

    20.77
    +0.04 (+0.18%)
     
  • EUR/USD

    1.0457
    +0.0013 (+0.1255%)
     
  • 10-Yr Bond

    3.0930
    -0.1130 (-3.52%)
     
  • Vix

    28.16
    -0.20 (-0.71%)
     
  • GBP/USD

    1.2138
    +0.0016 (+0.1323%)
     
  • USD/JPY

    136.5900
    +0.0450 (+0.0330%)
     
  • BTC-USD

    20,076.07
    -242.49 (-1.19%)
     
  • CMC Crypto 200

    431.10
    -8.56 (-1.95%)
     
  • FTSE 100

    7,312.32
    -11.09 (-0.15%)
     
  • Nikkei 225

    26,543.16
    -261.44 (-0.98%)
     

Is Momentus Inc. (NASDAQ:MNTS) Popular Amongst Institutions?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in Momentus Inc. (NASDAQ:MNTS) 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. Companies that have been privatized tend to have low insider ownership.

Momentus is a smaller company with a market capitalization of US$231m, 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. We can zoom in on the different ownership groups, to learn more about Momentus.

View our latest analysis for Momentus

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Momentus?

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.

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

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

We note that hedge funds don't have a meaningful investment in Momentus. Our data shows that Prime Movers Lab is the largest shareholder with 31% of shares outstanding. SRC-NI Holdings, LLC is the second largest shareholder owning 4.5% of common stock, and Stable Road Capital holds about 1.8% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Momentus

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that Momentus Inc. insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about US$1.9m worth of stock. This compares to a market capitalization of US$231m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of Momentus shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

With a stake of 31%, private equity firms could influence the Momentus board. 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.

Private Company Ownership

We can see that Private Companies own 4.5%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Momentus better, we need to consider many other factors. For instance, we've identified 4 warning signs for Momentus (2 are concerning) that 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.

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.