Individual investors who have a significant stake must be disappointed along with institutions after fuboTV Inc.'s (NYSE:FUBO) market cap dropped by US$54m

Key Insights

• Significant control over fuboTV by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 38% of the company
• Recent sales by insiders

To get a sense of who is truly in control of fuboTV Inc. (NYSE:FUBO), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 54% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 43% shares weren’t spared from last week’s US$54m market cap drop, individual investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of fuboTV, beginning with the chart below.

See our latest analysis for fuboTV

What Does The Institutional Ownership Tell Us About fuboTV?

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.

fuboTV already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 fuboTV's earnings history below. Of course, the future is what really matters.

fuboTV is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 8.2%. For context, the second largest shareholder holds about 7.5% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder. In addition, we found that David Gandler, the CEO has 0.9% of the shares allocated to their name.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of fuboTV

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in fuboTV Inc.. In their own names, insiders own US$8.7m worth of stock in the US$434m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in fuboTV, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand fuboTV better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with fuboTV , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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This 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.