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Significantly high institutional ownership implies CrowdStrike Holdings’ stock price is sensitive to their trading actions
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A total of 25 investors have a majority stake in the company with 47% ownership
A look at the shareholders of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) can tell us which group is most powerful. We can see that institutions own the lion’s share in the company with 73% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let’s take a closer look to see what the different types of shareholders can tell us about CrowdStrike Holdings.
Check out our latest analysis for CrowdStrike Holdings
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.
We can see that CrowdStrike Holdings does have institutional investors; and they hold a good portion of the company’s stock. 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. 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 CrowdStrike Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don’t have many shares in CrowdStrike Holdings. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.4% and 4.1%, of the shares outstanding, respectively. In addition, we found that George Kurtz, the CEO has 3.1% of the shares allocated to their name.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.