In This Article:
Key Insights
-
Given the large stake in the stock by institutions, PowerFleet's stock price might be vulnerable to their trading decisions
-
The top 20 shareholders own 51% of the company
To get a sense of who is truly in control of PowerFleet, Inc. (NASDAQ:AIOT), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
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. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of PowerFleet.
Check out our latest analysis for PowerFleet
What Does The Institutional Ownership Tell Us About PowerFleet?
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.
PowerFleet already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 PowerFleet's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in PowerFleet. Our data shows that Disciplined Growth Investors, Inc. is the largest shareholder with 6.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.4% and 5.1% of the stock. Furthermore, CEO Steve Towe is the owner of 0.5% of the company's shares.
A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.