Both individual investors who control a good portion of Bakkt Holdings, Inc. (NYSE:BKKT) along with institutions must be dismayed after last week's 11% decrease

By
Simply Wall St
Published
May 09, 2022
NYSE:BKKT
Source: Shutterstock

If you want to know who really controls Bakkt Holdings, Inc. (NYSE:BKKT), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 44% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of individual investors took a hit after last week’s 11% price drop, institutions with their 34% holdings also suffered.

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

View our latest analysis for Bakkt Holdings

ownership-breakdown
NYSE:BKKT Ownership Breakdown May 9th 2022

What Does The Institutional Ownership Tell Us About Bakkt Holdings?

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.

We can see that Bakkt Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Bakkt Holdings' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:BKKT Earnings and Revenue Growth May 9th 2022

Bakkt Holdings is not owned by hedge funds. Our data shows that Victory Park Capital Advisors, LLC is the largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.7% and 5.2% of the stock. Additionally, the company's CEO Gavin Michael directly holds 4.0% of the total shares outstanding.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Bakkt Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Bakkt Holdings, Inc.. Insiders have a US$96m stake in this US$897m business. 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

The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. 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.

Private Equity Ownership

With an ownership of 12%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

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 Bakkt Holdings is showing 1 warning sign in our investment analysis , you should know about...

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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