Key Insights:
– Institutional investors hold a large stake in The Joint Corp. (NASDAQ:JYNT), making the stock price vulnerable to their trading decisions.
– The top 7 shareholders account for 52% of the business.
– Analyst forecasts and ownership data provide insights into the prospects for the business.
Institutional Ownership:
Institutions own 51% of The Joint Corp., indicating that they stand to benefit the most if the stock rises, or lose the most in a downturn. Last week, institutional investors saw gains as the company hit a market cap of US$190m, boosting the one-year return to shareholders to 6.7%.
Hedge funds, with a 27% ownership stake, can influence management decisions to create value for shareholders. The largest shareholder is Bandera Partners LLC, followed by The Vanguard Group, Inc. and BlackRock, Inc. CEO Peter Holt owns 0.7% of the company’s shares.
Insider Ownership:
Insiders, including board members and top-level managers, own US$3.2m worth of stock in the company. While insider ownership can indicate alignment with shareholders, larger insider holdings are typically preferred.
General Public Ownership:
The general public, comprising individual investors, own 21% of The Joint Corp. While this ownership is considerable, it may not be enough to sway company policy if not in line with other large shareholders.
Next Steps:
Understanding the ownership structure of a company is crucial for investors. Considering other factors, such as analyst forecasts and potential warning signs, can provide a more comprehensive view of the company’s future performance.
Valuation:
For a comprehensive analysis of The Joint Corp., including fair value estimates, risks, dividends, insider transactions, and financial health, investors can access a free analysis report.
Disclaimer:
This article by Simply Wall St provides commentary based on historical data and analyst forecasts, using an unbiased methodology. It is not financial advice and does not constitute a recommendation to buy or sell any stock. Investors should consider their objectives and financial situation before making investment decisions. Simply Wall St has no position in any stocks mentioned.