Yahoo Finance Private equity firms who hold 55% of Corsair Gaming, Inc. (NASDAQ:CRSR) gained 3.8%, institutions profited as well
Key Insights
The considerable ownership by private equity firms in Corsair Gaming indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is EagleTree Capital, LP with a 55% stake
If you want to know who really controls Corsair Gaming, Inc. (NASDAQ:CRSR), then you'll have to look at the makeup of its share registry. With 55% stake, private equity firms possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 3.8% increase in the stock price last week, private equity firms profited the most, but institutions who own 23% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Corsair Gaming, beginning with the chart below.
See our latest analysis for Corsair Gaming
What Does The Institutional Ownership Tell Us About Corsair Gaming?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Corsair Gaming. 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 Corsair Gaming's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Corsair Gaming. The company's largest shareholder is EagleTree Capital, LP, with ownership of 55%. This implies that they have majority interest control of the future of the company. BlackRock, Inc. is the second largest shareholder owning 6.1% of common stock, and The Vanguard Group, Inc. holds about 4.5% of the company stock. In addition, we found that Andrew Paul, the CEO has 2.6% of the shares allocated to their name.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Corsair Gaming
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
We can report that insiders do own shares in Corsair Gaming, Inc.. The insiders have a meaningful stake worth US$62m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 19% stake in Corsair Gaming. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With a stake of 55%, private equity firms could influence the Corsair Gaming board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
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. Be aware that Corsair Gaming is showing 2 warning signs in our investment analysis , you should know about...
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
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