In This Article:
Key Insights
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Given the large stake in the stock by institutions, Hudson Technologies' stock price might be vulnerable to their trading decisions
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The top 14 shareholders own 52% of the company
Every investor in Hudson Technologies, Inc. (NASDAQ:HDSN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
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.
Let's take a closer look to see what the different types of shareholders can tell us about Hudson Technologies.
Check out our latest analysis for Hudson Technologies
What Does The Institutional Ownership Tell Us About Hudson Technologies?
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 Hudson Technologies. 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. 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 Hudson Technologies' earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Hudson Technologies. Looking at our data, we can see that the largest shareholder is Ernest Lazarus with 8.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.4% and 5.5%, of the shares outstanding, respectively. Additionally, the company's CEO Brian Coleman directly holds 2.0% of the total shares outstanding.
Looking at the shareholder registry, we can see that 52% of the ownership is controlled by the top 14 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.