Stock Analysis

Fisker Inc.'s (NYSE:FSR): Chief Financial Officer Geeta Gupta-Fisker is the most bullish insider, and their stock value gained 3.8% last week

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NYSE:FSR
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A look at the shareholders of Fisker Inc. (NYSE:FSR) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 3.8% gain.

In the chart below, we zoom in on the different ownership groups of Fisker.

Our analysis indicates that FSR is potentially overvalued!

ownership-breakdown
NYSE:FSR Ownership Breakdown December 1st 2022

What Does The Institutional Ownership Tell Us About Fisker?

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.

As you can see, institutional investors have a fair amount of stake in Fisker. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Fisker, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NYSE:FSR Earnings and Revenue Growth December 1st 2022

Fisker is not owned by hedge funds. From our data, we infer that the largest shareholder is Geeta Gupta-Fisker (who also holds the title of Chief Financial Officer) with 21% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 21% and 4.8% of the shares outstanding respectively, Henrik Fisker and Apollo Global Management, Inc. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Henrik Fisker is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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.

Insider Ownership Of Fisker

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Fisker Inc.. Insiders own US$1.0b worth of shares in the US$2.4b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 25% stake in Fisker. 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. Be aware that Fisker is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

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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