Yahoo Finance Integral Ad Science Holding Corp.'s (NASDAQ:IAS) 4.1% loss last week hit both individual investors who own 56% as well as institutions
Key Insights
The considerable ownership by private equity firms in Integral Ad Science Holding indicates that they collectively have a greater say in management and business strategy
The top 2 shareholders own 56% of the company
To get a sense of who is truly in control of Integral Ad Science Holding Corp. (NASDAQ:IAS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private equity firms with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While the holdings of private equity firms took a hit after last week’s 4.1% price drop, institutions with their 32% holdings also suffered.
In the chart below, we zoom in on the different ownership groups of Integral Ad Science Holding.
View our latest analysis for Integral Ad Science Holding
What Does The Institutional Ownership Tell Us About Integral Ad Science Holding?
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.
As you can see, institutional investors have a fair amount of stake in Integral Ad Science Holding. 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. 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 Integral Ad Science Holding's earnings history below. Of course, the future is what really matters.
Integral Ad Science Holding is not owned by hedge funds. The company's largest shareholder is Vista Equity Partners Management, LLC, with ownership of 42%. Accomplice Management LLC is the second largest shareholder owning 14% of common stock, and The Vanguard Group, Inc. holds about 4.6% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 Integral Ad Science Holding
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. 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.
Our information suggests that Integral Ad Science Holding Corp. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own US$13m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
Private equity firms hold a 56% stake in Integral Ad Science Holding. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Integral Ad Science Holding that you should be aware of before investing here.
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.
