AST SpaceMobile, Inc. (NASDAQ:ASTS) most popular amongst individual investors who own 68% of the shares, institutions hold 27%
Key Insights
The considerable ownership by individual investors in AST SpaceMobile indicates that they collectively have a greater say in management and business strategy
28% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of AST SpaceMobile, Inc. (NASDAQ:ASTS), it is important to understand the ownership structure of the business. With 68% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 27% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of AST SpaceMobile, beginning with the chart below.
View our latest analysis for AST SpaceMobile
What Does The Institutional Ownership Tell Us About AST SpaceMobile?
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 AST SpaceMobile. 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. 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 AST SpaceMobile's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in AST SpaceMobile. The Vanguard Group, Inc. is currently the largest shareholder, with 3.2% of shares outstanding. The second and third largest shareholders are American Tower Corporation and Rakuten Group, Inc., with an equal amount of shares to their name at 2.8%.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of AST SpaceMobile
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
Shareholders would probably be interested to learn that insiders own shares in AST SpaceMobile, Inc.. As individuals, the insiders collectively own US$19m worth of the US$923m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 68% of AST SpaceMobile shares. With this amount 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 vote on acquisitions or mergers that may not improve profitability.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for AST SpaceMobile you should be aware of, and 1 of them makes us a bit uncomfortable.
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.
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