Every investor in Talkspace, Inc. (NASDAQ: TALK) needs to know the most powerful shareholder groups. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Talkspace is not a big company by global standards. It has a market cap of $ 661 million, which means it wouldn’t get the attention of many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Talkspace.
Check out our latest analysis for Talkspace
What does institutional ownership tell us about Talkspace?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Talkspace already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Talkspace’s earnings history below. Of course, the future is what really matters.
It appears that 10% of Talkspace shares are controlled by hedge funds. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Hudson Executive Capital LP is currently the largest shareholder in the company with 10% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 9.7% and 8.2% of the outstanding shares, respectively. In addition, the CEO of the company, Oren Frank, directly owns 0.8% of the total shares outstanding.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of the chat room
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would likely be interested to learn that insiders own shares of Talkspace, Inc. As individuals, insiders collectively own US $ 24 million of the company US $ 661 million. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 30% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Private equity firms have a 34% stake in Talkspace. This suggests that they can influence key policy decisions. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Consider, for example, the ever-present specter of investment risk. We have identified 2 warning signs with Talkspace and understanding them should be part of your investment process.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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