Stock Analysis

VIZIO Holding Corp. (NYSE:VZIO) insiders still own 45% despite recent sales, but recent decline may have cost them

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NYSE:VZIO
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To get a sense of who is truly in control of VIZIO Holding Corp. (NYSE:VZIO), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 45% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Even though insiders have sold shares recently, the group owns the most numbers of shares in the company. As a result, they were also the group to endure the biggest losses as the stock fell by 5.3%.

Let's take a closer look to see what the different types of shareholders can tell us about VIZIO Holding.

Before we look at the ownership breakdown, you might like to know that our analysis indicates that VZIO is potentially undervalued!

ownership-breakdown
NYSE:VZIO Ownership Breakdown September 29th 2022

What Does The Institutional Ownership Tell Us About VIZIO Holding?

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.

VIZIO Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 VIZIO Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

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NYSE:VZIO Earnings and Revenue Growth September 29th 2022

We note that hedge funds don't have a meaningful investment in VIZIO Holding. Looking at our data, we can see that the largest shareholder is the CEO William Wang with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.5% and 5.8%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 VIZIO Holding

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 VIZIO Holding Corp.. Insiders own US$859m worth of shares in the US$1.9b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in VIZIO Holding. 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 5.8%, of the company's shares. 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.

Public Company Ownership

Public companies currently own 22% of VIZIO Holding stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for VIZIO Holding that you should be aware of.

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.

Valuation is complex, but we're helping make it simple.

Find out whether VIZIO Holding is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About NYSE:VZIO

VIZIO Holding

VIZIO Holding Corp., through its subsidiaries, provides smart televisions, sound bars, and accessories in the United States.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth5
Past Performance0
Financial Health6
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet with high growth potential.