Key Insights:
The ownership structure of CVRx, Inc. (NASDAQ:CVRX) reveals that private equity firms hold the majority of shares at 44%. This means they have significant control over the company and stand to benefit the most from any stock price increases. Institutions also own a substantial portion of CVRx, with 41% of the business in their hands. The top 6 shareholders hold 53% of the company’s shares.
Institutional Ownership:
Institutional investors, who own a significant stake in CVRx, typically compare their returns to benchmark indexes. The presence of institutions on the share registry indicates that analysts working for these institutions have a positive view of the stock. However, it is essential to consider other factors such as past earnings trajectory. The top institutional shareholders include Johnson & Johnson Innovation – JJDC, Inc., New Enterprise Associates, Inc., and Vensana Capital Management, LLC.
Insider Ownership:
Insiders, including board members, own less than 1% of CVRx, Inc. This low insider ownership may raise concerns among investors, as it suggests that the board may not be well aligned with shareholders. The market capitalization of CVRx is US$203m, with the board holding only US$1.2m worth of shares in their names.
General Public Ownership:
Individual investors, comprising the general public, own 13% of CVRx. While this ownership is considerable, it may not be sufficient to influence company policy if it conflicts with the decisions of other major shareholders.
Private Equity Ownership:
Private equity firms, with a 44% stake in CVRx, have significant influence over the company. This ownership structure could lead to activism from private equity firms or potential selling out of the company.
Next Steps:
While understanding the ownership structure of a company is important, investors should also consider factors such as investment risk. It is advisable to analyze warning signs and forecasts to make informed investment decisions. Additionally, evaluating the valuation of the company can provide insights into its potential growth or decline.