Any investor in Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) should be aware of the most powerful shareholder groups. And the group holding the biggest piece of the pie are private companies with a 39% stake. In other words, the group is exposed to maximum upside (or downside risk).
While private companies were the group that benefited the most from last week’s $15 million market cap gain, institutions also had a 23% share of those gains.
Let’s dive deeper into each Chicken Soup for the Soul Entertainment owner type, starting with the table below.
Try this chances and risks within the US entertainment industry.
What does institutional ownership tell us about chicken soup for soul entertainment?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. As such, they typically consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a significant stake in Chicken Soup for the Soul Entertainment. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. It’s not uncommon for the stock price to fall sharply when two large institutional investors attempt to sell a stock at the same time. So, it’s worth reviewing the earnings history of Chicken Soup for the Soul Entertainment (below). Of course, keep in mind that there are other factors to consider as well.
Chicken Soup for the Soul Entertainment is not owned by any hedge funds. Chicken Soup for the Soul Holdings, LLC is currently the company’s largest shareholder with 39% of outstanding shares. Apollo Global Management, Inc. and Granahan Investment Management, LLC are the second and third largest shareholders with 17% and 5.7% of the outstanding shares, respectively. In addition, CEO William Rouhana owns 1.6% of the company’s shares.
Upon investigating further, we found that the two largest shareholders together control more than half of the company’s stock, meaning they have considerable power to influence the company’s decisions.
Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. Quite a few analysts cover the stock, so you can easily look at the projected growth.
Inside ownership of chicken soup for soul entertainment
The definition of an insider may differ slightly from country to country, but board members always count. Management runs the business, but the CEO is accountable to the board even if he or she is a member.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.
We can report that insiders own shares in Chicken Soup for the Soul Entertainment, Inc. It has a market cap of just $143 million, and insiders have $6.1 million worth of shares in their own names. This at least shows some alignment, but we usually like to see larger insider holdings. You can click here to see if these Insiders have bought or sold.
General Public Property
With an 18% stake, the general public, consisting primarily of individual investors, has some influence over Chicken Soup for the Soul Entertainment. While this ownership may not be sufficient to sway a policy decision in their favor, they can still collectively influence company policy.
Private Equity Ownership
With a 17% stake, private equity firms could influence the board of Chicken Soup for the Soul Entertainment. Some might like that because sometimes private equity are activists who hold management accountable. But sometimes private equity sells out after the company goes public.
Private company property
It appears private companies own 39% of Chicken Soup for the Soul Entertainment stock. It’s hard to draw any 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 stock in a public company through a separate private company.
While it’s worth considering the different groups that own a business, there are other factors that are even more important. For example, take risks – Chicken Soup for the Soul Entertainment has 2 warning signs We think you should be aware of this.
If you’re like me, you might want to think about whether this company is going to grow or shrink. Luckily, you can check out this free report that includes analyst forecasts for the future.
Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.
The assessment is complex, but we help to simplify it.
find out if Chicken soup for soul entertainment may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.