Yahoo Finance With 47% ownership in Aurora Innovation, Inc. (NASDAQ:AUR), institutional investors have a lot riding on the business
Key Insights
Significantly high institutional ownership implies Aurora Innovation's stock price is sensitive to their trading actions
The top 6 shareholders own 52% of the company
Every investor in Aurora Innovation, Inc. (NASDAQ:AUR) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, institutional investors ended up benefitting the most after the company hit US$4.4b in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 119%.
Let's delve deeper into each type of owner of Aurora Innovation, beginning with the chart below.
See our latest analysis for Aurora Innovation
What Does The Institutional Ownership Tell Us About Aurora Innovation?
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.
Aurora Innovation already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Aurora Innovation's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Aurora Innovation. Our data shows that Uber Technologies, Inc. is the largest shareholder with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.4% and 7.4% of the stock. Christopher Urmson, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Aurora Innovation
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our information suggests that insiders maintain a significant holding in Aurora Innovation, Inc.. It is very interesting to see that insiders have a meaningful US$668m stake in this US$4.4b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aurora Innovation. 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.
Public Company Ownership
It appears to us that public companies own 26% of Aurora Innovation. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Aurora Innovation better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Aurora Innovation (of which 1 doesn't sit too well with us!) you should know about.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
