What types of investors own most of Ooma, Inc. (NYSE: OOMA)?
If you want to know who actually controls Ooma, Inc. (NYSE: OOMA), then you will need to examine the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders owning 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, “Don’t tell me what you think, tell me what you have in your wallet.
Ooma is not a large company by global standards. It has a market cap of US $ 485 million, which means it wouldn’t get the attention of many institutional investors. In the graph below, we can see that institutional investors have bought into the company. We can zoom in on the different property groups, to find out more about Ooma.
NYSE ownership breakdown: OOMA as of December 31, 2021
What does institutional ownership tell us about Ooma?
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 businesses to have some institutions listed, especially if they are growing.
We can see that Ooma has institutional investors; and they own a large portion of the company’s stock. 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. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Ooma’s earnings history below. Of course, the future is what really matters.
NYSE: OOMA Profits and Revenue Growth as of December 31, 2021
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. It appears that hedge funds hold 14% of Ooma’s shares. This is worth noting, as hedge funds are often quite active investors who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.5% of the shares outstanding. Meanwhile, the second and third shareholders respectively hold 7.4% and 6.3% of the outstanding shares. In addition, we found that Eric Stang, the CEO, owns 3.9% of the shares attributed to their name.
After digging a little deeper, we found that the top 11 own a combined 52% stake in the company, suggesting that no shareholder has significant control over the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Ooma Insider Property
The definition of an insider may differ slightly from country to country, but board members still count. 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.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own shares of Ooma, Inc. Its market capitalization is only US $ 485 million, and insiders have $ 33 million in shares in their own name. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public, generally individual investors, own 13% of the capital of Ooma. 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. To this end, you need to know the 1 warning sign we spotted with Ooma.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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