What Is The Ownership Structure Like For Virgin Galactic Holdings, Inc. (NYSE:SPCE)?
NYSE:SPCE) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.” data-reactid=”28″>A look at the shareholders of Virgin Galactic Holdings, Inc. (NYSE:SPCE) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$3.9b, Virgin Galactic Holdings is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about Virgin Galactic Holdings.
Check out our latest analysis for Virgin Galactic Holdings ” data-reactid=”30″> Check out our latest analysis for Virgin Galactic Holdings
What Does The Institutional Ownership Tell Us About Virgin Galactic Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Virgin Galactic Holdings. 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 Virgin Galactic Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Virgin Galactic Holdings. Our data shows that Virgin Group Holdings Limited is the largest shareholder with 27% of shares outstanding. SCH Sponsor Corp. is the second largest shareholder owning 6.7% of common stock, and Aabar Space, Inc. holds about 6.4% of the company stock.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Virgin Galactic Holdings
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.
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.
check here to see if those insiders have been buying recently. ” data-reactid=”72″>Shareholders would probably be interested to learn that insiders own shares in Virgin Galactic Holdings, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$191m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 35% ownership, the general public have some degree of sway over Virgin Galactic Holdings. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 40%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
Virgin Galactic Holdings is showing 3 warning signs in our investment analysis , you should know about…” data-reactid=”78″>It’s always worth thinking about the different groups who own shares in a company. But to understand Virgin Galactic Holdings better, we need to consider many other factors. Be aware that Virgin Galactic Holdings is showing 3 warning signs in our investment analysis , you should know about…
this free report showing analyst forecasts for its future.” data-reactid=”79″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”81″>This article by Simply Wall St is general in nature. 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.
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