Do insiders own a lot of shares in C3.ai, Inc. (NYSE: AI)?
A look at the shareholders of C3.ai, Inc. (NYSE: AI) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. 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.
C3.ai has a market cap of US $ 5.2 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about C3.ai.
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What does institutional ownership tell us about C3.ai?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors have a large stake in C3.ai. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. 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 with no history of growth. You can see C3.ai’s historical revenue and revenue below, but keep in mind that there is always more to tell.
Hedge funds don’t have a lot of shares in C3.ai. Looking at our data, we can see that the largest shareholder is CEO Thomas Siebel with 12% of the shares outstanding. Meanwhile, the second and third shareholders respectively hold 9.3% and 9.2% of the outstanding shares.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
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. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider property of C3.ai
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders have a significant stake in C3.ai, Inc. Its market capitalization is only US $ 5.2 billion and insiders have US $ 833 million in shares in their own name. It is quite important. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
With a 41% stake, the general public has some influence on C3.ai. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
With a 9.2% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
Owned by a private company
We can see that the private companies own 9.3% of the issued shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Note that C3.ai displays 4 warning signs in our investment analysis , and 1 of them concerns …
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
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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