With 43% ownership, Navitas Semiconductor Corporation (NASDAQ:NVTS) has piqued the interest of institutional investors
In This Article:
Key Insights
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Institutions' substantial holdings in Navitas Semiconductor implies that they have significant influence over the company's share price
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51% of the business is held by the top 10 shareholders
To get a sense of who is truly in control of Navitas Semiconductor Corporation (NASDAQ:NVTS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Navitas Semiconductor.
See our latest analysis for Navitas Semiconductor
What Does The Institutional Ownership Tell Us About Navitas Semiconductor?
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 Navitas Semiconductor. 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. 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 Navitas Semiconductor, (below). Of course, keep in mind that there are other factors to consider, too.
Navitas Semiconductor is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Navitas Semiconductor's case, its Senior Key Executive, Ranbir Singh, is the largest shareholder, holding 14% of shares outstanding. Atlantic Bridge Services Limited is the second largest shareholder owning 5.4% of common stock, and State Street Global Advisors, Inc. holds about 5.3% of the company stock. Additionally, the company's CEO Eugene Sheridan directly holds 2.7% of the total shares outstanding.
We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.