Could The SVF Investment Corp. 3 (NASDAQ:SVFC) Ownership Structure Tell Us Something Useful?

A look at the shareholders of SVF Investment Corp. 3 (NASDAQ:SVFC) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

SVF Investment 3 is a smaller company with a market capitalization of US$410m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about SVF Investment 3.

Check out our latest analysis for SVF Investment 3

What Does The Institutional Ownership Tell Us About SVF Investment 3?

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.

We can see that SVF Investment 3 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 SVF Investment 3's historic earnings and revenue below, but keep in mind there's always more to the story.

SVF Investment 3 is not owned by hedge funds. Our data shows that SoftBank Group Corp., Asset Management Arm is the largest shareholder with 4.9% of shares outstanding. Saba Capital Management, L.P. is the second largest shareholder owning 4.4% of common stock, and Arena Capital Advisors, LLC holds about 3.0% of the company stock.

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 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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of SVF Investment 3

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that SVF Investment Corp. 3 insiders own under 1% of the company. It appears that the board holds about US$1.1m worth of stock. This compares to a market capitalization of US$410m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a substantial 59% stake in SVF Investment 3, 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 SVF Investment 3 better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with SVF Investment 3 .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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. 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.
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