What types of shareholders hold the majority of shares in Peloton Interactive, Inc. (NASDAQ: PTON)?
The large shareholder groups of Peloton Interactive, Inc. (NASDAQ: PTON) have power over the company. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
Peloton Interactive has a market cap of US $ 32 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s dig deeper into each type of owner, to find out more about Peloton Interactive.
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What does institutional ownership tell us about Peloton Interactive?
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 businesses to have some institutions listed, especially if they are growing.
Peloton Interactive already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Peloton Interactive’s earnings history below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Peloton Interactive is not owned by hedge funds. Our data shows The Vanguard Group, Inc. is the largest shareholder with 7.5% of the shares outstanding. In comparison, the second and third shareholders hold around 6.9% and 6.2% of the capital. Additionally, CEO John Foley owns 1.8% of the company’s shares.
Looking at the register of shareholders, we can see that 51% of the property is controlled by the 13 major shareholders, which means that no shareholder has a controlling interest in the property.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Peloton Interactive insider property
The definition of an insider may differ slightly from country to country, but board members still count. 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
I can report that insiders own shares in Peloton Interactive, Inc. Insiders have a significant stake worth $ 1.9 billion. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public holds 11% of the capital of Peloton Interactive. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Private equity firms hold 5.5% of Peloton Interactive’s capital. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Peloton Interactive, there are many other factors that we need to take into account. For example, we have identified 2 warning signs for Peloton Interactive that you need to be aware of.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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 day 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.
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