With 62% institutional ownership, Ares Acquisition Corporation II (NYSE:AACT) is a favorite amongst the big guns
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Ares Acquisition Corporation II's stock price might be vulnerable to their trading decisions
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53% of the business is held by the top 8 shareholders
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Ares Acquisition Corporation II (NYSE:AACT), it is important to understand the ownership structure of the business. With 62% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Ares Acquisition Corporation II.
See our latest analysis for Ares Acquisition Corporation II
What Does The Institutional Ownership Tell Us About Ares Acquisition Corporation II?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ares Acquisition Corporation II's earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It looks like hedge funds own 28% of Ares Acquisition Corporation II shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Ares Management LLC is currently the largest shareholder, with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.0% and 7.8% of the stock.
We did some more digging and found that 8 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.