Institutions profited after AST SpaceMobile, Inc.'s (NASDAQ:ASTS) market cap rose US$45m last week butretail investors profited the most

Key Insights

• The considerable ownership by retail investors in AST SpaceMobile indicates that they collectively have a greater say in management and business strategy
• 40% of the business is held by the top 25 shareholders
• Institutional ownership in AST SpaceMobile is 36%

Every investor in AST SpaceMobile, Inc. (NASDAQ:ASTS) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched US$939m last week, while institutions who own 36% also benefitted.

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

View our latest analysis for AST SpaceMobile

What Does The Institutional Ownership Tell Us About AST SpaceMobile?

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.

AST SpaceMobile 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of AST SpaceMobile, (below). Of course, keep in mind that there are other factors to consider, too.

AST SpaceMobile is not owned by hedge funds. Rakuten Group, Inc. is currently the company's largest shareholder with 3.5% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.5% and 3.4% of the 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. 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 AST SpaceMobile

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We can report that insiders do own shares in AST SpaceMobile, Inc.. As individuals, the insiders collectively own US$45m worth of the US$939m company. 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, who are usually individual investors, hold a substantial 56% stake in AST SpaceMobile, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Public Company Ownership

Public companies currently own 3.5% of AST SpaceMobile stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 AST SpaceMobile that 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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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.