New Zealand markets closed
  • NZX 50

    11,617.14
    +6.15 (+0.05%)
     
  • NZD/USD

    0.6351
    -0.0002 (-0.04%)
     
  • ALL ORDS

    7,369.40
    -53.80 (-0.72%)
     
  • OIL

    72.74
    +0.73 (+1.01%)
     
  • GOLD

    1,795.00
    -3.00 (-0.17%)
     

Are Institutions Heavily Invested In Papaya Growth Opportunity Corp. I's (NASDAQ:PPYA) Shares?

If you want to know who really controls Papaya Growth Opportunity Corp. I (NASDAQ:PPYA), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Papaya Growth Opportunity I is not a large company by global standards. It has a market capitalization of US$373m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Papaya Growth Opportunity I.

View our latest analysis for Papaya Growth Opportunity I

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Papaya Growth Opportunity I?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Papaya Growth Opportunity I already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Papaya Growth Opportunity I's earnings history below. Of course, the future is what really matters.

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

Hedge funds don't have many shares in Papaya Growth Opportunity I. Looking at our data, we can see that the largest shareholder is Papaya Growth Opportunity I Sponsor LLC with 23% of shares outstanding. Saba Capital Management, L.P. is the second largest shareholder owning 4.2% of common stock, and MM Asset Management Inc holds about 3.6% of the company stock.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 Papaya Growth Opportunity I

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Papaya Growth Opportunity I. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 23%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Papaya Growth Opportunity I better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Papaya Growth Opportunity I (including 2 which are a bit concerning) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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

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.