The big shareholder groups in OPY Acquisition Corp. I (NASDAQ:OHAA) 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.
OPY Acquisition I is not a large company by global standards. It has a market capitalization of US$154m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about OPY Acquisition I.
Check out our latest analysis for OPY Acquisition I
What Does The Institutional Ownership Tell Us About OPY Acquisition 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.
As you can see, institutional investors have a fair amount of stake in OPY Acquisition I. 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. 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 OPY Acquisition I's historic earnings and revenue below, but keep in mind there's always more to the story.
It looks like hedge funds own 5.4% of OPY Acquisition I 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. Oppenheimer Asset Management Inc. is currently the company's largest shareholder with 40% of shares outstanding. For context, the second largest shareholder holds about 5.4% of the shares outstanding, followed by an ownership of 4.7% by the third-largest shareholder.
To make our study more interesting, we found that the top 3 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.