New Zealand markets close in 5 hours 10 minutes
  • NZX 50

    12,140.86
    +12.65 (+0.10%)
     
  • NZD/USD

    0.6688
    -0.0019 (-0.29%)
     
  • NZD/EUR

    0.5910
    -0.0004 (-0.06%)
     
  • ALL ORDS

    7,248.10
    -193.40 (-2.60%)
     
  • ASX 200

    6,961.60
    -177.90 (-2.49%)
     
  • OIL

    85.17
    +1.86 (+2.23%)
     
  • GOLD

    1,848.10
    +6.40 (+0.35%)
     
  • NASDAQ

    14,149.12
    -360.46 (-2.48%)
     
  • FTSE

    7,371.46
    +74.31 (+1.02%)
     
  • Dow Jones

    34,297.73
    -66.77 (-0.19%)
     
  • DAX

    15,123.87
    +112.74 (+0.75%)
     
  • Hang Seng

    24,243.61
    -412.85 (-1.67%)
     
  • NIKKEI 225

    27,131.34
    -457.03 (-1.66%)
     
  • NZD/JPY

    76.1240
    -0.2160 (-0.28%)
     

Is Benessere Capital Acquisition Corp. (NASDAQ:BENE) Popular Amongst Insiders?

·4-min read

Every investor in Benessere Capital Acquisition Corp. (NASDAQ:BENE) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Benessere Capital Acquisition is not a large company by global standards. It has a market capitalization of US$156m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Benessere Capital Acquisition.

View our latest analysis for Benessere Capital Acquisition

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Benessere Capital Acquisition?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Benessere Capital Acquisition. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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. So it is worth checking the past earnings trajectory of Benessere Capital Acquisition, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

It would appear that 12% of Benessere Capital Acquisition shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's CEO Patrick Orlando is the largest shareholder with 19% of shares outstanding. Hudson Bay Capital Management LP is the second largest shareholder owning 6.6% of common stock, and Shaolin Capital Management LLC holds about 5.6% of the company stock.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Benessere Capital Acquisition

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Benessere Capital Acquisition Corp.. Insiders own US$30m worth of shares in the US$156m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Benessere Capital Acquisition (2 can't be ignored!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting