Following recent decline, Sarcos Technology and Robotics Corporation's (NASDAQ:STRC) top shareholder Top Key Executive Benjamin Wolff sees holdings value drop by 29%

By
Simply Wall St
Published
April 12, 2022
NasdaqGM:STRC
Source: Shutterstock

If you want to know who really controls Sarcos Technology and Robotics Corporation (NASDAQ:STRC), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to US$709m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Sarcos Technology and Robotics, beginning with the chart below.

Check out our latest analysis for Sarcos Technology and Robotics

ownership-breakdown
NasdaqGM:STRC Ownership Breakdown April 12th 2022

What Does The Institutional Ownership Tell Us About Sarcos Technology and Robotics?

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.

We can see that Sarcos Technology and Robotics does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sarcos Technology and Robotics' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGM:STRC Earnings and Revenue Growth April 12th 2022

Sarcos Technology and Robotics is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Sarcos Technology and Robotics' case, its Top Key Executive, Benjamin Wolff, is the largest shareholder, holding 10% of shares outstanding. Marc Olivier is the second largest shareholder owning 10% of common stock, and Fraser Smith holds about 9.8% of the company stock. Interestingly, the second-largest shareholder, Marc Olivier is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Sarcos Technology and Robotics

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Sarcos Technology and Robotics Corporation. Insiders own US$289m worth of shares in the US$709m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sarcos Technology and Robotics. 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

Our data indicates that Private Companies hold 17%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

It appears to us that public companies own 11% of Sarcos Technology and Robotics. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Sarcos Technology and Robotics has 1 warning sign we think you should be aware of.

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.

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