Latest news with #institutionalownership
Globe and Mail
2 days ago
- Business
- Globe and Mail
Is Palantir the Next Tesla?
Key Points Tesla is a popular stock among individual investors. Palantir also doesn't have much institutional ownership. Low institutional ownership can cause a stock to challenge traditional stock market practices. 10 stocks we like better than Palantir Technologies › Palantir 's (NASDAQ: PLTR) impressive rise over the past few years has been nothing short of incredible. Still, there have also been questions surrounding Palantir's ability to deliver on the high expectations baked into the stock price. There has been no shortage of analysts calling for Palantir's fall (myself included) due to extreme valuation. This reminds me of another stock whose valuation metrics do not make a lot of sense: Tesla (NASDAQ: TSLA). However, Tesla has continued to defy traditional valuation metrics and has stayed at an elevated stock price for some time. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Could Palantir fall into this same realm? Or is it so inflated that a crash is coming? Tesla and Palantir's rise look similar Tesla stock's primary rise started in 2020, increasing from about $24 per share all the way to around today's $340 per share. It returned over 1,100% over that time frame, resulting in a rise that few stocks have ever matched. Palantir's rise has similarly been rapid and impressive. Its stock rose from around $16 to $185 at the time of this writing, resulting in about 1,000% gains. Both companies delivered impressive performance in a very short amount of time, despite not increasing their revenue by 10 times (or more) over that time frame. As a result, most investors assume that they've grown too fast and are ripe for a pullback. But this analysis excludes a significant aspect of the investment thesis. Palantir and Tesla have low institutional ownership One of the reasons why Tesla's stock did so well over that time frame is that individual investors owned it. Individual investors don't have the same mindset as institutions. Various funds and other money managers are likely more devoted to traditional valuation metrics. If their discounted cash flow (DCF) models don't work out, then they avoid the stock entirely. However, companies like Tesla and Palantir break the mold of what traditional finance teaches, which can invalidate the assumptions that go into these models. Individual investors are far more likely to take a long-term view and note that Tesla's technology and vision could allow it to deliver massive growth over the long term. This illustrates a huge difference in approaches: Institutional investors utilize trailing metrics to predict the future, while individual investors look at the world and see where it could go. This difference has allowed stocks like Tesla and Palantir to thrive, leading to massive market outperformance as individual investors are less concerned with traditional valuation measures. Whether you think that's a correct approach to these two stocks or not is irrelevant; it's what's going on. Luckily, we have access to a metric that measures the percentage of shares outstanding that institutions own. For Tesla, about 49% of shares outstanding are institutionally owned. Compared to other tech giants, this is rather low. For comparison, Alphabet and Meta Platforms each have about 78% of shares outstanding owned by institutional investors. That's quite the difference and shows how much individuals, rather than large institutions, own Tesla. Palantir is in the same territory as Tesla, with about 53% of shares owned by institutions. Compared to the two closest companies in market cap to Palantir, Costco and ExxonMobil, these two have 69% and 67% of shares owned by institutional investors, respectively. Because Palantir has a similarly small amount of shares owned by institutional investors as Tesla, the stock will likely continue to perform in a manner that some may consider irrational. The decision to invest in Palantir is up to you, but investors need to be aware that after Tesla's massive run, the stock became incredibly volatile. Palantir could be approaching that point, but we'll find out in the coming years. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Keithen Drury has positions in Alphabet, Meta Platforms, and Tesla. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Meta Platforms, Palantir Technologies, and Tesla. The Motley Fool has a disclosure policy.
Yahoo
2 days ago
- Business
- Yahoo
Is Palantir the Next Tesla?
Key Points Tesla is a popular stock among individual investors. Palantir also doesn't have much institutional ownership. Low institutional ownership can cause a stock to challenge traditional stock market practices. 10 stocks we like better than Palantir Technologies › Palantir's (NASDAQ: PLTR) impressive rise over the past few years has been nothing short of incredible. Still, there have also been questions surrounding Palantir's ability to deliver on the high expectations baked into the stock price. There has been no shortage of analysts calling for Palantir's fall (myself included) due to extreme valuation. This reminds me of another stock whose valuation metrics do not make a lot of sense: Tesla (NASDAQ: TSLA). However, Tesla has continued to defy traditional valuation metrics and has stayed at an elevated stock price for some time. Could Palantir fall into this same realm? Or is it so inflated that a crash is coming? Tesla and Palantir's rise look similar Tesla stock's primary rise started in 2020, increasing from about $24 per share all the way to around today's $340 per share. It returned over 1,100% over that time frame, resulting in a rise that few stocks have ever matched. Palantir's rise has similarly been rapid and impressive. Its stock rose from around $16 to $185 at the time of this writing, resulting in about 1,000% gains. Both companies delivered impressive performance in a very short amount of time, despite not increasing their revenue by 10 times (or more) over that time frame. As a result, most investors assume that they've grown too fast and are ripe for a pullback. But this analysis excludes a significant aspect of the investment thesis. Palantir and Tesla have low institutional ownership One of the reasons why Tesla's stock did so well over that time frame is that individual investors owned it. Individual investors don't have the same mindset as institutions. Various funds and other money managers are likely more devoted to traditional valuation metrics. If their discounted cash flow (DCF) models don't work out, then they avoid the stock entirely. However, companies like Tesla and Palantir break the mold of what traditional finance teaches, which can invalidate the assumptions that go into these models. Individual investors are far more likely to take a long-term view and note that Tesla's technology and vision could allow it to deliver massive growth over the long term. This illustrates a huge difference in approaches: Institutional investors utilize trailing metrics to predict the future, while individual investors look at the world and see where it could go. This difference has allowed stocks like Tesla and Palantir to thrive, leading to massive market outperformance as individual investors are less concerned with traditional valuation measures. Whether you think that's a correct approach to these two stocks or not is irrelevant; it's what's going on. Luckily, we have access to a metric that measures the percentage of shares outstanding that institutions own. For Tesla, about 49% of shares outstanding are institutionally owned. Compared to other tech giants, this is rather low. For comparison, Alphabet and Meta Platforms each have about 78% of shares outstanding owned by institutional investors. That's quite the difference and shows how much individuals, rather than large institutions, own Tesla. Palantir is in the same territory as Tesla, with about 53% of shares owned by institutions. Compared to the two closest companies in market cap to Palantir, Costco and ExxonMobil, these two have 69% and 67% of shares owned by institutional investors, respectively. Because Palantir has a similarly small amount of shares owned by institutional investors as Tesla, the stock will likely continue to perform in a manner that some may consider irrational. The decision to invest in Palantir is up to you, but investors need to be aware that after Tesla's massive run, the stock became incredibly volatile. Palantir could be approaching that point, but we'll find out in the coming years. Should you buy stock in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Keithen Drury has positions in Alphabet, Meta Platforms, and Tesla. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Meta Platforms, Palantir Technologies, and Tesla. The Motley Fool has a disclosure policy. Is Palantir the Next Tesla? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
EQT Corporation's (NYSE:EQT) high institutional ownership speaks for itself as stock continues to impress, up 3.0% over last week
Explore EQT's Fair Values from the Community and select yours Key Insights Significantly high institutional ownership implies EQT's stock price is sensitive to their trading actions A total of 15 investors have a majority stake in the company with 50% ownership Insiders have sold recently AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A look at the shareholders of EQT Corporation (NYSE:EQT) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 88% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And last week, institutional investors ended up benefitting the most after the company hit US$33b in market cap. The one-year return on investment is currently 67% and last week's gain would have been more than welcomed. Let's take a closer look to see what the different types of shareholders can tell us about EQT. See our latest analysis for EQT What Does The Institutional Ownership Tell Us About EQT? 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 EQT does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at EQT's earnings history below. Of course, the future is what really matters. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. EQT is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 12% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.6% of common stock, and Wellington Management Group LLP holds about 6.9% of the company stock. After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of EQT 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. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of EQT Corporation. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$229m worth of shares (at current prices). In this sort of situation, it can be more interesting to see if those insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. 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) 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.
Yahoo
3 days ago
- Business
- Yahoo
Drugs Made In America Acquisition Corp. (NASDAQ:DMAA) is definitely on the radar of institutional investors who own 38% of the company
Explore Drugs Made In America Acquisition's Fair Values from the Community and select yours Key Insights Significantly high institutional ownership implies Drugs Made In America Acquisition's stock price is sensitive to their trading actions 51% of the business is held by the top 9 shareholders Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Every investor in Drugs Made In America Acquisition Corp. (NASDAQ:DMAA) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 38% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's delve deeper into each type of owner of Drugs Made In America Acquisition, beginning with the chart below. Check out our latest analysis for Drugs Made In America Acquisition What Does The Institutional Ownership Tell Us About Drugs Made In America Acquisition? 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. As you can see, institutional investors have a fair amount of stake in Drugs Made In America Acquisition. 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 Drugs Made In America Acquisition's historic earnings and revenue below, but keep in mind there's always more to the story. It would appear that 16% of Drugs Made In America Acquisition shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is Drugs Made In America Acquisition LLC, with ownership of 12%. Karpus Management Inc. is the second largest shareholder owning 6.9% of common stock, and First Trust Capital Management L.P. holds about 6.2% of the company stock. We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. Insider Ownership Of Drugs Made In America Acquisition The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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. We can see that insiders own shares in Drugs Made In America Acquisition Corp.. As individuals, the insiders collectively own US$4.1m worth of the US$345m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. General Public Ownership The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Private Company Ownership We can see that Private Companies own 12%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Drugs Made In America Acquisition is showing 4 warning signs in our investment analysis , and 2 of those make us uncomfortable... 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) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
With 69% ownership in Trip.com Group Limited (NASDAQ:TCOM), institutional investors have a lot riding on the business
Key Insights Significantly high institutional ownership implies Group's stock price is sensitive to their trading actions 50% of the business is held by the top 21 shareholders Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you want to know who really controls Group Limited (NASDAQ:TCOM), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 69% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And as as result, institutional investors reaped the most rewards after the company's stock price gained 6.1% last week. One-year return to shareholders is currently 47% and last week's gain was the icing on the cake. In the chart below, we zoom in on the different ownership groups of Group. Check out our latest analysis for Group What Does The Institutional Ownership Tell Us About Group? 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. As you can see, institutional investors have a fair amount of stake in Group. 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 Group's historic earnings and revenue below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Group. Capital Research and Management Company is currently the company's largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.0% and 5.1% of the stock. After doing some more digging, we found that the top 21 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Shareholders would probably be interested to learn that insiders own shares in Group Limited. Insiders own US$825m worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently. General Public Ownership With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Group. 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. Public Company Ownership It appears to us that public companies own 7.0% of Group. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. 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) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
