New Zealand markets closed
  • NZX 50

    11,065.71
    -134.33 (-1.20%)
     
  • NZD/USD

    0.5598
    -0.0133 (-2.32%)
     
  • NZD/EUR

    0.5703
    -0.0129 (-2.22%)
     
  • ALL ORDS

    6,678.70
    -81.90 (-1.21%)
     
  • ASX 200

    6,474.20
    -80.80 (-1.23%)
     
  • OIL

    79.74
    -1.49 (-1.83%)
     
  • GOLD

    1,668.30
    -0.30 (-0.02%)
     
  • NASDAQ

    10,971.22
    -193.56 (-1.73%)
     
  • FTSE

    6,893.81
    +12.22 (+0.18%)
     
  • Dow Jones

    28,725.51
    -500.10 (-1.71%)
     
  • DAX

    12,114.36
    +138.81 (+1.16%)
     
  • Hang Seng

    17,222.83
    +56.96 (+0.33%)
     
  • NIKKEI 225

    25,937.21
    -484.84 (-1.83%)
     
  • NZD/JPY

    80.9920
    -1.7550 (-2.12%)
     

How Much Of 7GC & Co. Holdings Inc. (NASDAQ:VII) Do Institutions Own?

·4-min read

A look at the shareholders of 7GC & Co. Holdings Inc. (NASDAQ:VII) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of US$277m, 7GC Holdings is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about 7GC Holdings.

Check out our latest analysis for 7GC Holdings

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About 7GC Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in 7GC Holdings. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see 7GC Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

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

It would appear that 5.4% of 7GC Holdings shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is 7GC & Co. Holdings LLC, with ownership of 20%. Highbridge Capital Management, LLC is the second largest shareholder owning 5.4% of common stock, and Glazer Capital, LLC holds about 3.9% of the company stock.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of 7GC Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our data suggests that insiders own under 1% of 7GC & Co. Holdings Inc. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It appears that the board holds about US$963k worth of stock. This compares to a market capitalization of US$277m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 25% ownership, the general public have some degree of sway over 7GC Holdings. 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.

Private Company Ownership

Our data indicates that Private Companies hold 20%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for 7GC Holdings you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.