Yahoo Finance Owning 54% in GigCapital5, Inc. (NYSE:GIA) means that insiders are heavily invested in the company's future
Key Insights
GigCapital5's significant insider ownership suggests inherent interests in company's expansion
The largest shareholder of the company is Avishay Katz with a 54% stake
To get a sense of who is truly in control of GigCapital5, Inc. (NYSE:GIA), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
So it follows, every decision made by insiders of GigCapital5 regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of GigCapital5.
Check out our latest analysis for GigCapital5
What Does The Institutional Ownership Tell Us About GigCapital5?
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 GigCapital5. 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 GigCapital5, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 12% of GigCapital5 shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In GigCapital5's case, its Top Key Executive, Avishay Katz, is the largest shareholder, holding 54% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 4.7%, of the shares outstanding, respectively.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of GigCapital5
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders own more than half of GigCapital5, Inc.. This gives them effective control of the company. So they have a US$60m stake in this US$110m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 12% stake in GigCapital5. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand GigCapital5 better, we need to consider many other factors. Take risks for example - GigCapital5 has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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