ESS Tech, Inc. (NYSE:GWH) stock most popular amongst public companies who own 34%, while private equity firms hold 22%
In This Article:
Key Insights
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The considerable ownership by public companies in ESS Tech indicates that they collectively have a greater say in management and business strategy
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The top 4 shareholders own 51% of the company
A look at the shareholders of ESS Tech, Inc. (NYSE:GWH) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 34% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And private equity firms on the other hand have a 22% ownership in the company.
Let's delve deeper into each type of owner of ESS Tech, beginning with the chart below.
Check out our latest analysis for ESS Tech
What Does The Institutional Ownership Tell Us About ESS Tech?
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 ESS Tech 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 ESS Tech, (below). Of course, keep in mind that there are other factors to consider, too.
ESS Tech is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is SoftBank Group Corp. with 21% of shares outstanding. Honeywell International Inc. is the second largest shareholder owning 13% of common stock, and Breakthrough Energy LLC holds about 11% of the company stock. Additionally, the company's CEO Eric Dresselhuys directly holds 1.6% of the total shares outstanding.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of ESS Tech
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.