Key Insights

• Arqit Quantum's significant insider ownership suggests inherent interests in company's expansion

• The top 2 shareholders own 54% of the company

• Institutional ownership in Arqit Quantum is 10%

A look at the shareholders of Arqit Quantum Inc. (NASDAQ:ARQQ) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit US$100m market cap following a 51% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Arqit Quantum.

View our latest analysis for Arqit Quantum

What Does The Institutional Ownership Tell Us About Arqit Quantum?

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 Arqit Quantum 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Arqit Quantum's historic earnings and revenue below, but keep in mind there's always more to the story.

Arqit Quantum is not owned by hedge funds. The company's largest shareholder is Manfredi D’Ovidio, with ownership of 47%. Meanwhile, the second and third largest shareholders, hold 6.8% and 5.9%, of the shares outstanding, respectively.

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 54% stake.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Arqit Quantum

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.