What Kind Of Shareholders Hold The Majority In BlackSky Technology Inc.'s (NYSE:BKSY) Shares?

By
Simply Wall St
Published
February 23, 2022
NYSE:BKSY
Source: Shutterstock

A look at the shareholders of BlackSky Technology Inc. (NYSE:BKSY) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of US$270m, BlackSky Technology is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about BlackSky Technology.

View our latest analysis for BlackSky Technology

ownership-breakdown
NYSE:BKSY Ownership Breakdown February 23rd 2022

What Does The Institutional Ownership Tell Us About BlackSky Technology?

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 BlackSky Technology. 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 BlackSky Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:BKSY Earnings and Revenue Growth February 23rd 2022

We note that hedge funds don't have a meaningful investment in BlackSky Technology. Mithril Capital Management LLC is currently the largest shareholder, with 16% of shares outstanding. Thales S.A. is the second largest shareholder owning 13% of common stock, and Vulcan Capital holds about 8.8% of the company stock. In addition, we found that Brian O’Toole, the CEO has 0.7% of the shares allocated to their name.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of BlackSky Technology

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.

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.

Our most recent data indicates that insiders own some shares in BlackSky Technology Inc.. It has a market capitalization of just US$270m, and insiders have US$11m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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.

Private Equity Ownership

With an ownership of 25%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 7.0%, of the BlackSky Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

It appears to us that public companies own 13% of BlackSky Technology. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand BlackSky Technology better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for BlackSky Technology you should be aware of.

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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