What Kind Of Shareholders Hold The Majority In Climate Change Crisis Real Impact I Acquisition Corporation's (NYSE:CLII) Shares?
Every investor in Climate Change Crisis Real Impact I Acquisition Corporation (NYSE:CLII) 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.
Climate Change Crisis Real Impact I Acquisition is not a large company by global standards. It has a market capitalization of US$335m, which means it wouldn't have the attention 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 Climate Change Crisis Real Impact I Acquisition.
See our latest analysis for Climate Change Crisis Real Impact I Acquisition
What Does The Institutional Ownership Tell Us About Climate Change Crisis Real Impact I Acquisition?
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.
As you can see, institutional investors have a fair amount of stake in Climate Change Crisis Real Impact I Acquisition. 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 Climate Change Crisis Real Impact I Acquisition, (below). Of course, keep in mind that there are other factors to consider, too.
It looks like hedge funds own 6.3% of Climate Change Crisis Real Impact I Acquisition shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Climate Change Crisis Real Impact I Acquisition Holdings, LLC is currently the largest shareholder, with 19% of shares outstanding. With 7.3% and 6.9% of the shares outstanding respectively, Putnam LLC and Pacific Investment Management Company LLC are the second and third largest shareholders.
We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Climate Change Crisis Real Impact I Acquisition
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.
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.
Our data suggests that insiders own under 1% of Climate Change Crisis Real Impact I Acquisition Corporation in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just US$335m, and the board has only US$1.6m worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public holds a 24% stake in Climate Change Crisis Real Impact I Acquisition. 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 19%, 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 Climate Change Crisis Real Impact I Acquisition better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Climate Change Crisis Real Impact I Acquisition , and understanding them should be part of your investment process.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
This article by Simply Wall St is general in nature. 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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