In This Article:
Key Insights
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Significant insider control over Stardust Power implies vested interests in company growth
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57% of the business is held by the top 2 shareholders
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Stardust Power Inc. (NASDAQ:SDST), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As market cap fell to US$177m last week, insiders would have faced the highest losses than any other shareholder groups of the company.
Let's delve deeper into each type of owner of Stardust Power, beginning with the chart below.
See our latest analysis for Stardust Power
What Does The Institutional Ownership Tell Us About Stardust Power?
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 Stardust Power does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Stardust Power, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Stardust Power. The company's CEO Roshan Pujari is the largest shareholder with 48% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.7% and 9.6% of the stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Stardust Power
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.