![]() This may not be consistent with full year annual report figures. ![]() NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. After some time they may look to sell and redeploy capital elsewhere. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and - as the name suggests - don't invest in public companies much. With a stake of 17%, private equity firms could influence the Beam Global board. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. The general public- including retail investors - own 46% stake in the company, and hence can't easily be ignored. But it might be worth checking if those insiders have been selling. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. As individuals, the insiders collectively own US$3.0m worth of the US$167m company. We can report that insiders do own shares in Beam Global. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. I generally consider insider ownership to be a good thing. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The same can be achieved by studying analyst sentiments. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. Furthermore, CEO Desmond Wheatley is the owner of 0.7% of the company's shares. For context, the second largest shareholder holds about 9.6% of the shares outstanding, followed by an ownership of 6.6% by the third-largest shareholder. Townsend Ventures, LLC is currently the largest shareholder, with 10% of shares outstanding. We note that hedge funds don't have a meaningful investment in Beam Global. NasdaqCM:BEEM Earnings and Revenue Growth August 17th 2022 Of course, keep in mind that there are other factors to consider, too. So it is worth checking the past earnings trajectory of Beam Global, (below). It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. ![]() But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. This suggests some credibility amongst professional investors. Indeed, they own a respectable stake in the company. So they usually pay more attention to companies that are included in major indices.īeam Global already has institutions on the share registry. Many institutions measure their performance against an index that approximates the local market. NasdaqCM:BEEM Ownership Breakdown August 17th 2022 What Does The Institutional Ownership Tell Us About Beam Global?
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