Joby Aviation, Inc.'s (NYSE:JOBY) market cap up US$344m last week, benefiting both individual investors who own 30% as well as insiders

By
Simply Wall St
Published
February 17, 2022
NYSE:JOBY
Source: Shutterstock

If you want to know who really controls Joby Aviation, Inc. (NYSE:JOBY), 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 30% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s US$344m market cap gain, insiders too had a 28% share in those profits.

Let's delve deeper into each type of owner of Joby Aviation, beginning with the chart below.

Check out our latest analysis for Joby Aviation

ownership-breakdown
NYSE:JOBY Ownership Breakdown February 17th 2022

What Does The Institutional Ownership Tell Us About Joby Aviation?

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 Joby Aviation. 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. 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 Joby Aviation's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NYSE:JOBY Earnings and Revenue Growth February 17th 2022

Joby Aviation is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO JoeBen Bevirt with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 10.0% of the stock. Interestingly, the third-largest shareholder, Paul Sciarra is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Joby Aviation

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.

It seems insiders own a significant proportion of Joby Aviation, Inc.. It has a market capitalization of just US$3.4b, and insiders have US$927m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Joby Aviation. 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 14%, 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.

Public Company Ownership

We can see that public companies hold 13% of the Joby Aviation shares on issue. 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:

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Joby Aviation (of which 1 is concerning!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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