The considerable ownership by private equity firms in BigBear.ai Holdings indicates that they collectively have a greater say in management and business strategy
The top 2 shareholders own 57% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
A look at the shareholders of BigBear.ai Holdings, Inc. (NYSE:BBAI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private equity firms with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 32% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of BigBear.ai Holdings.
What Does The Institutional Ownership Tell Us About BigBear.ai Holdings?
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 BigBear.ai Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. 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 BigBear.ai Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
NYSE:BBAI Earnings and Revenue Growth November 7th 2024
BigBear.ai Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is AE Industrial Partners, LP with 32% of shares outstanding. Pangiam Ultimate Holdings, LLC is the second largest shareholder owning 26% of common stock, and BlackRock, Inc. holds about 2.6% of the company stock. Additionally, the company's CEO Amanda Long directly holds 1.2% of the total shares outstanding.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of BigBear.ai Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in BigBear.ai Holdings, Inc.. It has a market capitalization of just US$440m, and insiders have US$10m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BigBear.ai Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
Private equity firms hold a 32% stake in BigBear.ai Holdings. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Private Company Ownership
We can see that Private Companies own 26%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
