In This Article:
Key Insights
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The considerable ownership by individual investors in MicroStrategy indicates that they collectively have a greater say in management and business strategy
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39% of the business is held by the top 25 shareholders
A look at the shareholders of MicroStrategy Incorporated (NASDAQ:MSTR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While individual investors were the group that benefitted the most from last week’s US$17b market cap gain, institutions too had a 38% share in those profits.
Let's delve deeper into each type of owner of MicroStrategy, beginning with the chart below.
Check out our latest analysis for MicroStrategy
What Does The Institutional Ownership Tell Us About MicroStrategy?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in MicroStrategy. 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. 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 MicroStrategy's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in MicroStrategy. From our data, we infer that the largest shareholder is Michael Saylor (who also holds the title of Top Key Executive) with 8.1% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 7.5% and 7.1% of the shares outstanding respectively, Capital Research and Management Company and The Vanguard Group, Inc. are the second and third largest shareholders.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.