With 47% ownership, 374Water Inc. (NASDAQ:SCWO) insiders have a lot riding on the company's future
In This Article:
Key Insights
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Insiders appear to have a vested interest in 374Water's growth, as seen by their sizeable ownership
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50% of the business is held by the top 3 shareholders
Every investor in 374Water Inc. (NASDAQ:SCWO) should be aware of the most powerful shareholder groups. With 47% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
Let's delve deeper into each type of owner of 374Water, beginning with the chart below.
Check out our latest analysis for 374Water
What Does The Institutional Ownership Tell Us About 374Water?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in 374Water. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see 374Water's historic earnings and revenue below, but keep in mind there's always more to the story.
374Water is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yaacov Nagar with 28% of shares outstanding. Marc Deshusses is the second largest shareholder owning 17% of common stock, and MB Holding Inc. holds about 4.6% of the company stock. Marc Deshusses, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of 374Water
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.