Every investor in Palantir Technologies Inc. (NYSE:PLTR) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 34% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of Palantir Technologies.
View our latest analysis for Palantir Technologies
What Does The Institutional Ownership Tell Us About Palantir Technologies?
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.
Palantir Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Palantir Technologies' earnings history below. Of course, the future is what really matters.
Palantir Technologies is not owned by hedge funds. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 7.6%. With 7.0% and 4.4% of the shares outstanding respectively, Peter Thiel and BlackRock, Inc. are the second and third largest shareholders. Peter Thiel, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Alexander Karp is the owner of 2.6% of the company's shares.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Palantir Technologies
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circ*mstances.
It seems insiders own a significant proportion of Palantir Technologies Inc.. It is very interesting to see that insiders have a meaningful US$1.4b stake in this US$14b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
The general public -- including retail investors -- own 51% of Palantir Technologies. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Public Company Ownership
Public companies currently own 3.9% of Palantir Technologies stock. 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 Palantir Technologies better, we need to consider many other factors. For instance, we've identified 1 warning sign for Palantir Technologies that you should be aware of.
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.
Valuation is complex, but we're helping make it simple.
Find out whether Palantir Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
As an expert in financial analysis and shareholder dynamics, I bring a wealth of knowledge to the discussion of Palantir Technologies Inc. (NYSE:PLTR) and its investor landscape. My understanding is based on a deep dive into the company's ownership structure and the implications it holds for potential investors. Let's break down the key concepts highlighted in the article.
Shareholder Groups:
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Individual Investors (51% Ownership):
- Individual investors represent the majority shareholder group, holding around 51% of Palantir Technologies' shares.
- This significant ownership implies that individual investors have the highest upside potential (or downside risk) among all shareholder groups.
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Institutions (34% Ownership):
- Institutions, with a 34% ownership stake, play a substantial role in Palantir Technologies.
- Institutional ownership is often associated with professional investors and credibility, but it's essential to recognize that institutions can also make poor investment decisions.
Institutional Ownership Insights:
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Institutional Focus on Major Indices:
- Many institutions benchmark their performance against market indices, indicating that they pay close attention to companies included in major indices like Palantir Technologies.
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Earnings History and Future Outlook:
- The article suggests that while institutional ownership adds credibility, it's crucial to consider the company's earnings history and, more importantly, its future prospects.
Top Shareholders and Insider Ownership:
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Top Shareholders:
- The Vanguard Group, Inc. is the largest shareholder with 7.6% ownership.
- Peter Thiel and BlackRock, Inc. follow with ownership stakes of 7.0% and 4.4%, respectively.
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Insider Ownership:
- Insiders, including Peter Thiel and CEO Alexander Karp, collectively own a significant portion (2.6% for Karp) of the company.
- Insider ownership is seen as positive, as it aligns the interests of management with those of shareholders.
General Public and Public Company Ownership:
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General Public (51% Ownership):
- The general public, including retail investors, holds the majority of shares (51%), giving them collective influence on executive decisions.
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Public Company Ownership (3.9%):
- Public companies own 3.9% of Palantir Technologies, suggesting potential strategic interests.
Conclusion and Next Steps:
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Ownership Structure Complexity:
- A deeper look reveals that the top 25 shareholders collectively hold less than half of the shares, indicating a diverse ownership landscape.
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Next Steps for Investors:
- The article recommends considering various factors beyond ownership, including analyst recommendations and potential warning signs.
- Emphasizes the importance of understanding the company's future outlook.
Note on Article and Analysis:
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Methodology and Scope:
- The figures and analysis presented in the article are based on data from the last twelve months, providing a snapshot of the company's ownership landscape during that period.
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Cautionary Note:
- The article serves as general commentary, and readers are advised to conduct comprehensive research and consider multiple factors before making investment decisions.
In essence, Palantir Technologies' ownership structure is dynamic, with a mix of individual, institutional, and insider investors, each contributing to the company's overall direction and performance.
