NYSE News Today – Is the Shareholding of Palantir Technologies Inc. (NYSE: PLTR) biased in favor of insiders? | Zoom Fintech

If you want to know who actually controls Palantir Technologies Inc. (NYSE: PLTR), then you will need to examine the makeup of its share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market capitalization of US $ 54 billion, Palantir Technologies is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Palantir Technologies.

Check out our latest review for Palantir Technologies

What does institutional ownership tell us about Palantir Technologies?

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 businesses to have some institutions listed, especially if they are growing.

We see that Palantir Technologies has institutional investors; and they own a good portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Palantir Technologies’ past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.

Hedge funds don’t have a lot of shares in Palantir Technologies. Because stocks speak louder than words, we consider it a good sign when insiders have a large stake in a company. In the case of Palantir Technologies, its Top Key Executive, Peter Thiel, is the largest shareholder, holding 7.3% of the outstanding shares. In comparison, the second and third shareholders hold around 6.4% and 6.2% of the capital. In addition, the CEO of the company, Alexander Karp, directly owns 1.2% of the total shares outstanding.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider property of Palantir Technologies

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

It appears that insiders own a significant proportion of Palantir Technologies Inc. Insiders own $ 5.7 billion in shares of the $ 54 billion company. It is quite significant. Most would be happy to see the board invest alongside them. You may want to access this free chart showing recent insider trades.

General public property

The general public, mainly retail investors, have a substantial 60% stake in Palantir Technologies, which suggests that it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to refuse an acquisition or merger that might not improve profitability.

Private shareholders

With a 6.4% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Sometimes we see private equity stay for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.

Public enterprise ownership

It can be seen that public companies hold 6.2% of Palantir Technologies shares at issue. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves to be deepened.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs with Palantir Technologies, and understanding them should be part of your investment process.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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