What Kind Of Shareholders Hold The Majority In Anthemis Digital Acquisitions I Corp's (NASDAQ:ADAL) Shares?

The big shareholder groups in Anthemis Digital Acquisitions I Corp (NASDAQ:ADAL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Anthemis Digital Acquisitions I is not a large company by global standards. It has a market capitalization of US$301m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Anthemis Digital Acquisitions I.

See our latest analysis for Anthemis Digital Acquisitions I

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NasdaqGM:ADAL Ownership Breakdown July 2nd 2022

What Does The Institutional Ownership Tell Us About Anthemis Digital Acquisitions I?

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 Anthemis Digital Acquisitions I 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 Anthemis Digital Acquisitions I, (below). Of course, keep in mind that there are other factors to consider, too.

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NasdaqGM:ADAL Earnings and Revenue Growth July 2nd 2022

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 5.2% of Anthemis Digital Acquisitions I. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Anthemis Digital Acquisitions I Sponsor Lp is the largest shareholder with 24% of shares outstanding. For context, the second largest shareholder holds about 5.2% of the shares outstanding, followed by an ownership of 4.7% by the third-largest shareholder.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.