U.S. markets closed
  • S&P Futures

    3,953.25
    +8.25 (+0.21%)
     
  • Dow Futures

    33,699.00
    +66.00 (+0.20%)
     
  • Nasdaq Futures

    11,593.25
    +27.25 (+0.24%)
     
  • Russell 2000 Futures

    1,817.10
    +3.00 (+0.17%)
     
  • Crude Oil

    74.30
    +0.05 (+0.07%)
     
  • Gold

    1,784.10
    +1.70 (+0.10%)
     
  • Silver

    22.43
    +0.10 (+0.43%)
     
  • EUR/USD

    1.0466
    -0.0003 (-0.03%)
     
  • 10-Yr Bond

    3.5130
    -0.0860 (-2.39%)
     
  • Vix

    22.17
    +1.42 (+6.84%)
     
  • GBP/USD

    1.2132
    -0.0001 (-0.01%)
     
  • USD/JPY

    137.2340
    +0.2740 (+0.20%)
     
  • BTC-USD

    17,036.54
    +38.11 (+0.22%)
     
  • CMC Crypto 200

    402.14
    +0.34 (+0.08%)
     
  • FTSE 100

    7,521.39
    -46.15 (-0.61%)
     
  • Nikkei 225

    27,732.81
    -153.06 (-0.55%)
     

What Type Of Shareholders Own The Most Number of Rose Hill Acquisition Corporation (NASDAQ:ROSE) Shares?

A look at the shareholders of Rose Hill Acquisition Corporation (NASDAQ:ROSE) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Rose Hill Acquisition is not a large company by global standards. It has a market capitalization of US$188m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Rose Hill Acquisition.

Check out our latest analysis for Rose Hill Acquisition

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Rose Hill Acquisition?

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 Rose Hill Acquisition 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 Rose Hill Acquisition'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

It would appear that 6.4% of Rose Hill Acquisition shares are controlled by hedge funds. 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. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Rose Hill Acquisition's case, its Co-Chief Financial Officer, Albert Hill, is the largest shareholder, holding 27% of shares outstanding. With 6.4% and 4.4% of the shares outstanding respectively, Saba Capital Management, L.P. and Highbridge Capital Management, LLC are the second and third largest shareholders.

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.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Rose Hill Acquisition

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.

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.

It seems insiders own a significant proportion of Rose Hill Acquisition Corporation. It has a market capitalization of just US$188m, and insiders have US$50m 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

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Rose Hill Acquisition. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Rose Hill Acquisition (including 2 which are a bit concerning) .

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.

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.