CuriosityStream Inc.'s (NASDAQ:CURI) 12% loss last week hit both individual investors who own 36% as well as institutions
Key Insights
- CuriosityStream's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 17 shareholders own 50% of the company
- Insiders have been selling lately
Every investor in CuriosityStream Inc. (NASDAQ:CURI) should be aware of the most powerful shareholder groups. With 36% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 33% came under pressure after market cap dropped to US$207m last week,retail investors took the most losses.
Let's delve deeper into each type of owner of CuriosityStream, beginning with the chart below.
View our latest analysis for CuriosityStream
What Does The Institutional Ownership Tell Us About CuriosityStream?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in CuriosityStream. 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. 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 CuriosityStream, (below). Of course, keep in mind that there are other factors to consider, too.
CuriosityStream is not owned by hedge funds. Our data suggests that John Hendricks, who is also the company's Top Key Executive, holds the most number of shares at 22%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Clint Stinchcomb is the second largest shareholder owning 4.1% of common stock, and BlackRock, Inc. holds about 3.6% of the company stock. Interestingly, the second-largest shareholder, Clint Stinchcomb is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.
After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of CuriosityStream
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 CuriosityStream Inc.. It has a market capitalization of just US$207m, and insiders have US$63m 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
The general public, who are usually individual investors, hold a 36% stake in CuriosityStream. 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. Be aware that CuriosityStream is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.