Given the large stake in the stock by institutions, Zoom Video Communications' stock price might be vulnerable to their trading decisions
The top 20 shareholders own 50% of the company
Insiders have sold recently
A look at the shareholders of Zoom Video Communications, Inc. (NASDAQ:ZM) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of Zoom Video Communications, beginning with the chart below.
NasdaqGS:ZM Ownership Breakdown July 14th 2024
What Does The Institutional Ownership Tell Us About Zoom Video Communications?
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 Zoom Video Communications. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Zoom Video Communications' earnings history below. Of course, the future is what really matters.
NasdaqGS:ZM Earnings and Revenue Growth July 14th 2024
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Zoom Video Communications. The Vanguard Group, Inc. is currently the largest shareholder, with 7.6% of shares outstanding. With 7.3% and 4.9% of the shares outstanding respectively, Eric Yuan and BlackRock, Inc. are the second and third largest shareholders. Eric Yuan, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Zoom Video Communications
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of Zoom Video Communications, Inc.. It has a market capitalization of just US$18b, and insiders have US$3.0b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 23% 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Zoom Video Communications (of which 1 can't be ignored!) you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
關鍵見解
鑑於機構持有該股的大量股份,Zoom Video Communications的股價可能容易受到其交易決策的影響
前20名股東擁有公司50%的股份
業內人士最近賣出了
看看Zoom Video Communications, Inc.(納斯達克股票代碼:ZM)的股東可以告訴我們哪個集團最強大。我們可以看到,機構擁有該公司的大部分股份,所有權爲60%。換句話說,該集團將從對公司的投資中獲得最多(或損失最大)。
如你所見,機構投資者在Zoom Video Communications中擁有相當數量的股份。這可能表明該公司在投資界具有一定程度的信譽。但是,最好謹慎地依賴機構投資者所謂的驗證。他們有時也會弄錯。如果多家機構同時改變對股票的看法,你可能會看到股價快速下跌。因此,值得在下面查看Zoom Video Communications的收益記錄。當然,未來才是真正重要的。
納斯達克GS: ZM 收益和收入增長 2024 年 7 月 14 日
投資者應注意,機構實際上擁有公司一半以上的股份,因此它們可以共同行使巨大的權力。我們注意到,對沖基金沒有對Zoom Video Communications進行有意義的投資。Vanguard Group, Inc.目前是最大股東,已發行股份的7.6%。Eric Yuan和貝萊德公司分別擁有7.3%和4.9%的已發行股份,是第二和第三大股東。第二大股東埃裏克·袁也恰好擁有首席執行官的頭銜。
我們的最新數據表明,內部人士擁有Zoom Video Communications, Inc.合理比例的股份。它的市值僅爲180億美元,內部人士以自己的名義持有價值30億美元的股票。這非常重要。大多數人會說,這表明了與股東的良好一致性,尤其是在如此規模的公司中。你可以點擊這裏查看這些內部人士是否在買入或賣出。