If you want to know who actually controls Innovid Corp. (NYSE: CTV), then you will need to review the makeup of its share register. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Innovid isn’t huge, but it’s not particularly small either. He has a market cap of US $ 1.0 billion, which means he generally expects to see certain institutions listed on the stock register. Our analysis of company ownership, below, shows that institutions are not really present on the share register. Let’s dig deeper into each type of owner, to find out more about Innovid.
NYSE: Distribution of CTV Ownership December 6, 2021
What does the lack of institutional ownership tell us about Innovid?
We don’t tend to see institutional investors owning stocks of very risky, lightly traded, or very small companies. While we sometimes see large companies without registered institutions, this is not particularly common.
There are several explanations why institutions do not hold shares. The most common is that the company is too small in relation to the funds under management, so that the institution does not bother to take a close look at the company. On the other hand, there is always the possibility that professional investors will avoid a company because they think it is not the best place for their money. Institutional investors may not find the company’s historical growth impressive, or there may be other factors at play. You can see for yourself the past performance of Innovid’s earnings below.
NYSE: CTV Earnings and Revenue Growth December 6, 2021
We note that the hedge funds do not have a significant investment in Innovid. Looking at our data, we can see that the largest shareholder is Genesis Partners Ltd. with 14% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 13% and 8.9%, respectively, of the outstanding shares. In addition, CEO Zvika Netter owns 4.5% of the company’s shares.
A closer look at our ownership data shows that the top 12 shareholders collectively own less than half of the ledger, suggesting a large group of small holders where no shareholder has a majority.
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. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider property of Innovid
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Shareholders would likely be interested to learn that insiders own shares of Innovid Corp. Insiders hold a significant stake worth US $ 90 million. Most would see this as a real benefit. If you would like to explore the issue of Insider Alignment, you can click here to see if any Insiders have bought or sold.
General public property
The general public, made up mainly of individual investors, collectively owns 51% of the shares of Innovid. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
With a 27% 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.
Owned by a private company
Our data indicates that private companies own 8.9% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
Public enterprise ownership
Public companies currently own 3.8% of the shares of Innovid. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Innovid, there are many other factors that we need to take into account. To this end, you need to know the 1 warning sign we spotted with Innovid.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
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.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.
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 any stock 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.