What Is The Ownership Structure Like For Akoustis Technologies, Inc. (NASDAQ:AKTS)?

Simply Wall St

Sat, Feb 27, 2021, 11:20 PM 4 min read

Every investor in Akoustis Technologies, Inc. (NASDAQ:AKTS) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of 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.

Akoustis Technologies is a smaller company with a market capitalization of US$606m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems 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 Akoustis Technologies.

Check out our latest analysis for Akoustis Technologies

ownership-breakdown — NasdaqCM:AKTS Ownership Breakdown February 28th 2021

What Does The Institutional Ownership Tell Us About Akoustis Technologies?

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.

As you can see, institutional investors have a fair amount of stake in Akoustis Technologies. 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 Akoustis Technologies' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NasdaqCM:AKTS Earnings and Revenue Growth February 28th 2021

Hedge funds don't have many shares in Akoustis Technologies. BlackRock, Inc. is currently the company's largest shareholder with 5.2% of shares outstanding. With 3.8% and 3.7% of the shares outstanding respectively, The Vanguard Group, Inc. and Handelsbanken Asset Management are the second and third largest shareholders. Furthermore, CEO Jeffrey Shealy is the owner of 2.5% of the company's shares.

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 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.

Insider Ownership Of Akoustis Technologies

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to learn that insiders own shares in Akoustis Technologies, Inc.. As individuals, the insiders collectively own US$49m worth of the US$606m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public have some degree of sway over Akoustis Technologies. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Akoustis Technologies has 5 warning signs we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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