Forge Global Holdings, Inc. (NYSE:FRGE) surges 14%; individual investors who own 40% shares profited along with institutions

Key Insights

• Significant control over Forge Global Holdings by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 14 investors have a majority stake in the company with 51% ownership
• 14% of Forge Global Holdings is held by insiders

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A look at the shareholders of Forge Global Holdings, Inc. (NYSE:FRGE) can tell us which group is most powerful. With 40% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 14% increase in the stock price last week, individual investors profited the most, but institutions who own 39% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Forge Global Holdings, beginning with the chart below.

See our latest analysis for Forge Global Holdings

What Does The Institutional Ownership Tell Us About Forge Global 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.

As you can see, institutional investors have a fair amount of stake in Forge Global Holdings. 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 Forge Global Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Forge Global Holdings. Looking at our data, we can see that the largest shareholder is Deutsche Boerse AG, Asset Management Arm with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.4% and 5.4%, of the shares outstanding, respectively. Furthermore, CEO Kelly Rodriques is the owner of 4.6% of the company's shares.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Forge Global Holdings

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.

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 Forge Global Holdings, Inc.. Insiders own US$16m worth of shares in the US$117m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Forge Global Holdings. 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 a stake of 7.4%, private equity firms could influence the Forge Global Holdings board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Forge Global Holdings has 2 warning signs we think 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.