With 60% institutional ownership, Ares Acquisition Corporation II (NYSE:AACT) is a favorite amongst the big guns

Key Insights

  • Significantly high institutional ownership implies Ares Acquisition Corporation II's stock price is sensitive to their trading actions

  • The top 11 shareholders own 50% of the company

  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Ares Acquisition Corporation II (NYSE:AACT) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let's delve deeper into each type of owner of Ares Acquisition Corporation II, beginning with the chart below.

Check out our latest analysis for Ares Acquisition Corporation II

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Ares Acquisition Corporation II?

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.

We can see that Ares Acquisition Corporation II does have institutional investors; and they hold a good portion of the company's stock. 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 Ares Acquisition Corporation II, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 20% of Ares Acquisition Corporation II. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Ares Management LLC is currently the largest shareholder, with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.0% and 3.6% of the stock.