The big shareholder groups in Chardan Healthcare Acquisition 2 Corp. (NYSEMKT:CHAQ) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.
With a market capitalization of US$112m, Chardan Healthcare Acquisition 2 is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Chardan Healthcare Acquisition 2.
Check out our latest analysis for Chardan Healthcare Acquisition 2
What Does The Institutional Ownership Tell Us About Chardan Healthcare Acquisition 2?
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.
As you can see, institutional investors have a fair amount of stake in Chardan Healthcare Acquisition 2. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Chardan Healthcare Acquisition 2, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 5.4% of Chardan Healthcare Acquisition 2. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. With a 19% stake, CEO Jonas Sven Grossman is the largest shareholder. With 8.4% and 5.4% of the shares outstanding respectively, Steven Oliveira and K2 & Associates Investment Management Inc. are the second and third largest shareholders.
We did some more digging and found that 9 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.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.