What percentage of Vita Coco Company, Inc. (NASDAQ:COCO) stock do insiders own?
If you want to know who actually controls The Vita Coco Company, Inc. (NASDAQ: COCO), you’ll need to look at the composition of its stock register. Insiders often own a large portion of younger, smaller companies, while larger 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 wallet”.
Vita Coco Company is not a big company by world standards. It has a market cap of US$635 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutional investors have bought the company. Let’s dig deeper into each owner type to learn more about Vita Coco Company.
Check out our latest analysis for Vita Coco Company
What does institutional ownership tell us about the Vita Coco company?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Vita Coco Company already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the Vita Coco Company earnings history below. Of course, the future is what really matters.
We note that hedge funds have no significant investment in Vita Coco Company. The company’s largest shareholder is Reignwood Group, with a 6.1% stake. Meanwhile, the second and third largest shareholders hold 5.1% and 4.4% of the outstanding shares respectively. Michael Kirban, who is the second shareholder, also holds the title of co-CEO.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Insider ownership of Vita Coco Company
The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of The Vita Coco Company, Inc. It has a market capitalization of just US$635 million, and insiders own US$86 million of stock in their own name. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
The general public, including retail investors, owns 23% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
Private Company Ownership
It seems that private companies hold 43% of the shares of Vita Coco Company. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Example: we have identified 3 warning signs for Vita Coco Company you need to be aware of, and 1 of them should not be ignored.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.