If you want to know who really controls Gogo Inc. (NASDAQ:GOGO), you need to look at the composition of its stock register. The institution owns 40% of his shares and owns the largest stake in the company. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
Given the vast amount of money and research capacity at their disposal, institutional ownership tends to carry a lot of weight, especially for individual investors. As a result, the significant amount of institutional money invested in companies is generally viewed as a positive attribute.
Let’s take a closer look at each type of Gogo owner, starting with the diagram below.
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What can institutional ownership tell us about Gogo?
Because institutional investors typically measure themselves against benchmarks when reporting to their investors, they are often more enthusiastic about a stock when it is included in a major index. Most companies are expected to have several institutions registered, especially if they are growing.
You can see that Gogo has institutional investors. They own a significant portion of the company’s stock. This means that analysts working for these institutions have seen the stock and liked it. But, like everyone else, they can be wrong.When multiple institutions own shares, there is always the risk of getting into a “congested deal.” If such a deal goes wrong, multiple parties may compete to sell the stock fast. This risk is higher for companies with no history of growth. Below are Gogo’s past earnings and returns, but remember there’s more to the story.
Hedge funds don’t own much of Gogo’s stock. Looking at the data, we can see that the largest shareholder is GTCR LLC, with his 25% of outstanding shares. Meanwhile, the second and third largest shareholders hold 21% of the outstanding shares and his 5.0% respectively.
A more detailed examination of the shareholder register revealed that three of the top shareholders own 51% of the shares and have a significant amount of ownership in the company.
It makes sense to study institutional investor data for companies, but it also makes sense to study analyst sentiment to get an idea of where the wind is heading. There are many analysts covering stocks, so it might be worth taking a look at their forecasts as well.
Gogo Insider Ownership
While the precise definition of an insider can be subjective, we believe that most directors are insiders. The company’s management runs the business, but the CEO answers the board even though he is a member of the board.
I usually think insider ownership is a good thing. However, in some cases, it becomes more difficult for other shareholders to hold the board accountable for decision making.
You can report that an insider owns Gogo Inc. stock. This is a big company, so it’s good to see this level of match. The insider said at current prices he owns shares worth US$72 million. Most people would say that this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if those insiders are selling.
The general public, usually individual investors, own 10% of Gogo’s shares. This group does not decide everything, but it definitely has a big influence on the management of the company.
Private equity ownership
With 25% ownership, the private equity firm is positioned to play a role in shaping corporate strategy focused on value creation. Some investors may find this encouraging, as private equity can facilitate strategies that help the market understand the value of a company. Alternatively, their holders may exit their investments after the public offering.
Private Company Ownership
A private company appears to own 21% of Gogo shares. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into the owners of these private companies. An insider or other party may have an interest in the stock of a public company through another private company.
It’s well worth considering the different groups that own companies, but there are other factors that are even more important. To do that, you need to learn: 5 warning signs Found on Gogo (including 3 potentially serious ones).
But in the end it’s the future, not the past will determine how well the owner of this business will do. Therefore, we encourage you to check out this free report that shows whether analysts are predicting a brighter future.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …