Do institutions own shares of AxonPrime Infrastructure Acquisition Corporation (NASDAQ:APMI)?
Every investor in AxonPrime Infrastructure Acquisition Corporation (NASDAQ:APMI) should know the most powerful shareholder groups. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see a decline in insider participation in companies that were previously public.
With a market capitalization of US$181 million, AxonPrime Infrastructure Acquisition is a small cap stock, so it may not be well known to many institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about the acquisition of AxonPrime Infrastructure.
Check out our latest analysis for AxonPrime Infrastructure Acquisition
What does institutional ownership tell us about the acquisition of AxonPrime infrastructure?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
AxonPrime Infrastructure Acquisition already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the AxonPrime Infrastructure Acquisition earnings history below. Of course, the future is what really matters.
It appears that hedge funds own 41% of the shares of AxonPrime Infrastructure Acquisition. This is worth noting, as hedge funds are often quite active investors, who may try to influence management. Many want value creation (and a rise in share price) in the short to medium term. The company’s largest shareholder is AxonPrime Infrastructure Sponsor LLC, with a 19% stake. In comparison, the second and third shareholders hold approximately 8.0% and 7.9% of the shares.
We also observed that the top 6 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.
Insider Ownership of AxonPrime Infrastructure Acquisition
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
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 data does not allow us to confirm that the members of the board of directors personally hold shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.
General public property
With a 13% stake, the general public, consisting mainly of individual investors, has some influence on the acquisition of AxonPrime infrastructure. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private equity ownership
With a 5.3% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. 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 company. Alternatively, these holders could exit the investment after making it public.
Private Company Ownership
It appears that private companies own 19% of the shares of AxonPrime Infrastructure Acquisition. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
It is always useful to think about the different groups that own shares in a company. But to better understand AxonPrime Infrastructure Acquisition, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with AxonPrime Infrastructure Acquisition (at least 2 of which we don’t like too much), and understanding them should be part of your investment process.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.