Key Insights

• The considerable ownership by individual investors in Nextdoor Holdings indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 10 shareholders
• 12% of Nextdoor Holdings is held by insiders

To get a sense of who is truly in control of Nextdoor Holdings, Inc. (NYSE:KIND), it is important to understand the ownership structure of the business. With 33% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.1% increase in the stock price last week, individual investors profited the most, but institutions who own 32% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Nextdoor Holdings.

What Does The Institutional Ownership Tell Us About Nextdoor Holdings?

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.

We can see that Nextdoor Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Nextdoor Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Nextdoor Holdings. The company's largest shareholder is Benchmark, with ownership of 14%. For context, the second largest shareholder holds about 8.8% of the shares outstanding, followed by an ownership of 6.8% by the third-largest shareholder. Nirav Tolia, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nextdoor Holdings

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. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Nextdoor Holdings, Inc.. Insiders have a US$118m stake in this US$969m business. 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 33% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

With an ownership of 23%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nextdoor Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for Nextdoor Holdings that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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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.