While hedge funds own 20% of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), private companies are its largest shareholders with 26% ownership
Key Insights
The considerable ownership by private companies in Altisource Portfolio Solutions indicates that they collectively have a greater say in management and business strategy
52% of the business is held by the top 3 shareholders
To get a sense of who is truly in control of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 26% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, hedge funds make up 20% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Altisource Portfolio Solutions.
Check out our latest analysis for Altisource Portfolio Solutions
What Does The Institutional Ownership Tell Us About Altisource Portfolio Solutions?
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.
As you can see, institutional investors have a fair amount of stake in Altisource Portfolio Solutions. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Altisource Portfolio Solutions' earnings history below. Of course, the future is what really matters.
It looks like hedge funds own 20% of Altisource Portfolio Solutions shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Salt Pond Holdings, LLC is currently the largest shareholder, with 26% of shares outstanding. Deer Park Road Corporation is the second largest shareholder owning 20% of common stock, and Steven Becker holds about 5.7% of the company stock. Additionally, the company's CEO William Shepro directly holds 3.1% of the total shares outstanding.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. 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 Altisource Portfolio Solutions
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. 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.
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.
Our information suggests that insiders maintain a significant holding in Altisource Portfolio Solutions S.A.. Insiders own US$17m worth of shares in the US$108m company. 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 19% stake in Altisource Portfolio Solutions. 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.
Private Company Ownership
We can see that Private Companies own 26%, of the shares on issue. 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 Altisource Portfolio Solutions better, we need to consider many other factors. For example, we've discovered 3 warning signs for Altisource Portfolio Solutions (1 shouldn't be ignored!) that you should be aware of before investing here.
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.
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.
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