Retail investors account for 39% of Arbe Robotics Ltd.'s (NASDAQ:ARBE) ownership, while private equity firms account for 21%
Key Insights
The considerable ownership by retail investors in Arbe Robotics indicates that they collectively have a greater say in management and business strategy
The top 7 shareholders own 51% of the company
If you want to know who really controls Arbe Robotics Ltd. (NASDAQ:ARBE), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And private equity firms on the other hand have a 21% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Arbe Robotics.
Check out our latest analysis for Arbe Robotics
What Does The Institutional Ownership Tell Us About Arbe Robotics?
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.
Arbe Robotics already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Arbe Robotics, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 10.0% of Arbe Robotics. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Canaan Partners Israel is currently the largest shareholder, with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 10.0% and 9.4% of the stock. Furthermore, CEO Jacob Marenko is the owner of 4.8% of the company's shares.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Arbe Robotics
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Arbe Robotics Ltd.. It has a market capitalization of just US$144m, and insiders have US$15m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 39% stake in Arbe Robotics. 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
Private equity firms hold a 21% stake in Arbe Robotics. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Private Company Ownership
It seems that Private Companies own 6.8%, of the Arbe Robotics stock. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Arbe Robotics better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Arbe Robotics you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
