With 37% ownership in AvePoint, Inc. (NASDAQ:AVPT), insiders continue to have the largest holding even though they have sold shares recently
Key Insights
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AvePoint's significant insider ownership suggests inherent interests in company's expansion
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A total of 6 investors have a majority stake in the company with 51% ownership
A look at the shareholders of AvePoint, Inc. (NASDAQ:AVPT) can tell us which group is most powerful. With 37% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Despite recent sales, insiders own the most shares in the company.
Let's take a closer look to see what the different types of shareholders can tell us about AvePoint.
View our latest analysis for AvePoint
What Does The Institutional Ownership Tell Us About AvePoint?
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 companies to have some institutions on the register, especially if they are growing.
AvePoint already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see AvePoint's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in AvePoint. Zhijian Lu is currently the company's largest shareholder with 10% of shares outstanding. For context, the second largest shareholder holds about 9.5% of the shares outstanding, followed by an ownership of 9.1% by the third-largest shareholder. Xunkai Gong, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Tianyi Jiang directly holds 8.6% of the total shares outstanding.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.