Every investor in QuantumScape Corporation (NYSE: QS) needs to know the most powerful shareholder groups. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
QuantumScape has a market cap of US $ 10.0 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about QuantumScape.
Check out our latest analysis for QuantumScape
What does institutional ownership tell us about QuantumScape?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that QuantumScape has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be careful not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see QuantumScape’s historical revenue and revenue below, but keep in mind that there is always more to tell.
We note that hedge funds do not have a significant investment in QuantumScape. The company’s main shareholder is Porsche Automobil Holding SE, with a 17% stake. Khosla Ventures, LLC is the second largest shareholder holding 8.5% of the common stock, and Jagdeep Singh owns approximately 4.5% of the company’s stock. Jagdeep Singh, who is the third shareholder, also holds the title of Chairman of the Board of Directors.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined 51% ownership, implying that no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
QuantumScape Insider Property
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders retain a significant stake in QuantumScape Corporation. Insiders hold $ 1.1 billion in company shares worth $ 10 billion. It is quite significant. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public has a 36% stake in QuantumScape. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private equity firms hold an 8.5% stake in QuantumScape. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
Public enterprise ownership
We see that public companies hold 17% of the shares of QuantumScape at issue. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves further study.
It’s always worth thinking about the different groups that own shares in a company. But to understand QuantumScape better, there are many other factors to consider. For example, we discovered 3 warning signs for QuantumScape (1 is concerning!) Which you should know before investing here.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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