3/25/2023 0 Comments Smile direct club stock![]() ![]() Luckily, you can check this free report showing analyst forecasts for its future. If you are like me, you may want to think about whether this company will grow or shrink. Be aware that SmileDirectClub is showing 5 warning signs in our investment analysis, and 3 of those are potentially serious. But to truly gain insight, we need to consider other information, too. I find it very interesting to look at who exactly owns a company. ![]() They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions. This size of ownership gives investors from the general public some collective power. The general public - including retail investors - own 67% of SmileDirectClub. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. In their own names, insiders own US$16m worth of stock in the US$369m company. We can see that insiders own shares in SmileDirectClub, Inc. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. I generally consider insider ownership to be a good thing. Notably, sometimes top-level managers are on the board themselves. The company management answer to the board and the latter should represent the interests of shareholders. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. 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. 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. Additionally, the company's CEO David Katzman directly holds 0.7% of the total shares outstanding. are the second and third largest shareholders. With 5.9% and 1.2% of the shares outstanding respectively, Prentice Capital Management, LP and BlackRock, Inc. is the largest shareholder with 7.4% of shares outstanding. Our data shows that The Vanguard Group, Inc. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data indicates that hedge funds own 5.9% of SmileDirectClub. NasdaqGS:SDC Earnings and Revenue Growth October 13th 2022 Of course, keep in mind that there are other factors to consider, too. ![]() So it is worth checking the past earnings trajectory of SmileDirectClub, (below). 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. But just like anyone else, they could be wrong. This implies the analysts working for those institutions have looked at the stock and they like it. So they usually pay more attention to companies that are included in major indices.Īs you can see, institutional investors have a fair amount of stake in SmileDirectClub. Many institutions measure their performance against an index that approximates the local market. Let's delve deeper into each type of owner of SmileDirectClub, beginning with the chart below.Ĭheck out our latest analysis for SmileDirectClub NasdaqGS:SDC Ownership Breakdown October 13th 2022 What Does The Institutional Ownership Tell Us About SmileDirectClub? While the holdings of individual investors took a hit after last week’s 10% price drop, institutions with their 23% holdings also suffered. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). We can see that individual investors own the lion's share in the company with 67% ownership. ( NASDAQ:SDC) should be aware of the most powerful shareholder groups. ![]()
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