The big shareholder groups in SES AI Corporation (NYSE:SES) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.
SES AI isn't enormous, but it's not particularly small either. It has a market capitalization of US$2.2b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about SES AI.
View our latest analysis for SES AI
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.
We can see that SES AI does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 SES AI, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in SES AI. SK Inc. is currently the largest shareholder, with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 10.0% of the stock. Qichao Hu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of SES AI Corporation. Insiders own US$274m worth of shares in the US$2.2b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
The general public– including retail investors — own 26% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private equity firms hold a 10.0% stake in SES AI. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
It seems that Private Companies own 9.1%, of the SES AI stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
It appears to us that public companies own 28% of SES AI. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
It's always worth thinking about the different groups who own shares in a company. But to understand SES AI better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with SES AI (at least 1 which is concerning) , and understanding them should be part of your investment process.
If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Every investor in Century Casinos, Inc. ( NASDAQ:CNTY ) should be aware of the most powerful shareholder groups…
Peloton Interactive (NASDAQ: PTON) is scheduled to report fiscal 2022 third-quarter earnings before the markets open on Tuesday, May 10. Peloton thrived during the early stages of the pandemic when gyms were closed, and demand for at-home exercise equipment surged. Peloton has since been trying to calibrate the business into equilibrium with several changes to pricing, leadership, and cost structure.
Schiff called the 2008 mortgage bubble. And he’s sounding the alarm again.
What to make of the markets right now? Last week brought more losses in what’s been a volatile year for stocks. The five straight weeks of market declines marked the longest such streak in over a decade. More ominously, they came in along with a number of other disturbing data points. The April jobs numbers, released on Friday, came to 428,000 jobs added for the month, superficially strong and well above the 391,000 expected. But the labor remains depressed, and the total number of workers, even
Fighting inflation isn’t complicated. Here are 3 passive ways to do it.
(Bloomberg) — Rivian Automotive Inc. fell as much as 9.6% in U.S. premarket trading after a media report that Ford Motor Co. is selling 8 million of its shares in the electric-pickup maker at a discount.Most Read from BloombergPhilippines Election: Extended Voting Requested Amid GlitchesEU Push to Ban Russian Oil Is Stalled by Hungarian DemandsDay Trader Army Loses All the Money It Made in Meme-Stock EraUkraine Latest: Japan to Phase Out Russian Oil; Crude SwingsU.S. Futures Signal Equity Plung
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is one of the world's most dominant companies. Its two largest divisions, the Google search engine and YouTube, have a market share of 86% and 76% in their respective industries. As a result, advertisers flock to these platforms because they know Google and YouTube will provide a fantastic return on ad dollars spent.
The Fed is tightening, and the pain for growth stocks and high-debt companies isn’t going away. It’s time to buckle up.
Warren Buffett is growing bullish on the oil market. Chevron is now Berkshire's fourth-biggest equity holding. Buffett also owns a significant stake in Occidental Petroleum after buying $7 billion in shares last month to complement his legacy investment in the oil giant.
(Bloomberg) — The outlook for U.S. stocks isn’t particularly bright, even if an outright recession is avoided, according to Goldman Sachs Group Inc. strategists. Most Read from BloombergPhilippines Election: Extended Voting Requested Amid GlitchesEU Push to Ban Russian Oil Is Stalled by Hungarian DemandsDay Trader Army Loses All the Money It Made in Meme-Stock EraUkraine Latest: Japan to Phase Out Russian Oil; Crude SwingsU.S. Futures Signal Equity Plunge; Dollar Jumps: Markets Wrap“The best ca
PagerDuty, Nvidia, and PayPal are quality tech businesses that won't stay in the bargain bin forever.
(Bloomberg) — It’s ending as fast as it began for retail day traders, whose crowd-sourced daring was the pre-eminent story of pandemic equities.Most Read from BloombergPhilippines Election: Extended Voting Requested Amid GlitchesEU Push to Ban Russian Oil Is Stalled by Hungarian DemandsDay Trader Army Loses All the Money It Made in Meme-Stock EraUkraine Latest: Japan to Phase Out Russian Oil; Crude SwingsU.S. Futures Signal Equity Plunge; Dollar Jumps: Markets WrapNursing losses in 2022 that ar
The first quarter was very tough for Rivian and its shareholders. At the beginning of March, the company had said that the Normal, Ill., factory had capacity to produce 50,000 vehicles in 2022, but due to supply-chain difficulties, Rivian would manufacture only half that number — 25,000. The market capitalization at Rivian has shrunk by $66.1 billion, to $25.43 billion from Dec. 31 to May 6.
Cleveland-Cliffs delivered outstanding first-quarter results. The problem? Everyone was expecting it.
O'Neil set forth one of the best systems for successful investing. Here's my take on his great advice.
A stock market crash and big losses for former high flyers has some people questioning their investments.
Recession anxiety appears to be spreading through the stock market, overshadowing a respectable corporate earnings reporting season.
It looks like Exxon Mobil Corporation ( NYSE:XOM ) is about to go ex-dividend in the next 3 days. The ex-dividend date…
The is already in a bear market, and the is likely to do the same, even if it hasn’t met the precise definition of a 20% drop just yet. DeBusschere’s conclusion: “Nobody believes what Powell said Wednesday.”
With the Nasdaq down 22% in 2022, it’s time to look for bargains. Shares of Sony and Electronics Arts could be a good place to start.