What does the ownership structure of Capitol Investment Corp. look like? V (NYSE: CAP)?
If you want to know who actually controls Capitol Investment Corp. V (NYSE: CAP), then you will need to review the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, âDon’t tell me what you think, tell me what you have in your wallet.
Capitol Investment V is not a large company by global standards. It has a market cap of $ 428 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Capitol Investment V.
NYSE Ownership Breakdown: CAP June 20, 2021
What does institutional ownership tell us about Capitol Investment V?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Capitol Investment V already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Capitol Investment V’s historic earnings and income below, but keep in mind that there is always more to tell.
NYSE: CAP Profits and Revenue Growth June 20, 2021
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Our data indicates that hedge funds own 13% of Capitol Investment V. This is interesting, because hedge funds can be quite active and activist. Many are looking for medium-term catalysts that will drive up the share price. The company’s CEO, Mark Ein, is the largest shareholder with 12% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 7.3% and 7.2% of the outstanding shares, respectively. Interestingly, the third largest shareholder, L. Dryden, is also a member of the board of directors, again indicating strong insider ownership among the major shareholders of the company.
After digging a little deeper, we found that the top 11 own a combined 52% stake in the business, suggesting that no shareholder has significant control over the business.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider ownership of Capitol Investment V
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It appears that insiders own a significant proportion of Capitol Investment Corp. V. Its market capitalization is only US $ 428 million, and insiders have US $ 86 million of shares in their name. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 17% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Example: we have spotted 1 warning sign for Capitol Investment V you must be aware.
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NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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