ESH Acquisition Corp. (NASDAQ:ESHA) is largely controlled by institutional shareholders who own 52% of the company
In This Article:
Key Insights
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Institutions' substantial holdings in ESH Acquisition implies that they have significant influence over the company's share price
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A total of 8 investors have a majority stake in the company with 52% ownership
If you want to know who really controls ESH Acquisition Corp. (NASDAQ:ESHA), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
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. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of ESH Acquisition.
See our latest analysis for ESH Acquisition
What Does The Institutional Ownership Tell Us About ESH Acquisition?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that ESH Acquisition 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 ESH Acquisition, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It looks like hedge funds own 13% of ESH Acquisition 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. Looking at our data, we can see that the largest shareholder is the CEO James Francis with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.6% and 6.4% of the stock.
We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.