What Type Of Shareholders Make Up Epiphany Technology Acquisition Corp.'s (NASDAQ:EPHY) Share Registry?

Every investor in Epiphany Technology Acquisition Corp. (NASDAQ:EPHY) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$504m, Epiphany Technology Acquisition is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Epiphany Technology Acquisition.

See our latest analysis for Epiphany Technology Acquisition

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NasdaqCM:EPHY Ownership Breakdown July 24th 2022

What Does The Institutional Ownership Tell Us About Epiphany Technology Acquisition?

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.

Epiphany Technology Acquisition already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Epiphany Technology Acquisition's historic earnings and revenue below, but keep in mind there's always more to the story.

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NasdaqCM:EPHY Earnings and Revenue Growth July 24th 2022

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It looks like hedge funds own 5.5% of Epiphany Technology Acquisition shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that Epiphany Technology Sponsor LLC is the largest shareholder with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.5% and 3.9% of the stock.

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.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.