The big shareholder groups in $SoFi Technologies Inc.(SOFI)$ have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.
With a market capitalization of US$5.3b, SoFi Technologies is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about SoFi Technologies.
ownership-breakdown
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.
SoFi Technologies 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 SoFi Technologies' earnings history below. Of course, the future is what really matters.
earnings-and-revenue-growth
Hedge funds don't have many shares in SoFi Technologies. The company's largest shareholder is SoftBank Group Corp., with ownership of 10%. In comparison, the second and third largest shareholders hold about 5.6% and 4.7% of the stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SoFi Technologies
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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 maintain a significant holding in SoFi Technologies, Inc.. Insiders own US$548m worth of shares in the US$5.3b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish toaccess this free chart showing recent trading by insiders.
General Public Ownership
The general public, who are usually individual investors, hold a 44% stake in SoFi Technologies. 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 10% of SoFi Technologies. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
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