If you want to know who really controls Blend Labs, Inc. (NYSE: BLND), then you will need to examine the makeup of their share ledger. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
Blend Labs is a pretty big company. It has a market capitalization of 3.1 billion US dollars. Normally, institutions would own a significant share of a company of this size. In the graphic below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Blend Labs.
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What does institutional ownership tell us about Blend Labs?
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 can see that Blend Labs has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Blend Labs revenue and historical revenue below, but keep in mind that there is always more to tell.
Our data shows that hedge funds own 7.4% of Blend Labs. This is interesting, because hedge funds can be very active and activist. Many are looking for medium-term catalysts that will drive up the share price. Our data shows Lightspeed Ventures, LLC is the largest shareholder with 11% of the shares outstanding. With 7.4% and 7.1% of shares outstanding, respectively, Tiger Global Management, LLC and Formation8 Partners, LLC are the second and third shareholders. In addition, the CEO of the company, Nima Ghamsari, directly owns 5.7% of the total shares outstanding.
We dug a little deeper and found that 8 of the major shareholders make up around 51% of the ledger, implying that in addition to the larger shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat. .
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Blend Labs Insider Property
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.
We can see that insiders own stock in Blend Labs, Inc. It’s a pretty big company, so it’s generally positive to see a potentially meaningful alignment. In this case, they own around $ 220 million in stock (at current prices). It’s good to see this level of investment from the insiders. You can check here if these insiders have bought recently.
General public property
The general public, with a 46% stake in the company, will not be easily overlooked. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
With a 29% 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 sticking around 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.
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. Note that Blend Labs displays 3 warning signs in our investment analysis , and 1 of them makes us a little uncomfortable …
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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 any of the stocks mentioned.
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