ChargePoint Holdings, Inc.’s (NYSE:CHPT) market cap dropped US$625m last week; individual investors who hold 42% were hit as were institutions

If you want to know who really controls ChargePoint Holdings, Inc. (NYSE:CHPT), you need to look at the composition of the stock register. We can see that individual investors own the lion’s share of the company at 42%. That is, the group will benefit most when the stock goes up (or lose most when it goes down).

While institutions, which own 32% of the shares, were not spared last week’s $625 million drop in market cap, individual investors as a group suffered the largest losses

Let’s take a closer look at what the different types of shareholders can tell us about ChargePoint Holdings.

Our analysis indicates this CHPT is potentially undervalued!

property breakdown
NYSE:CHPT ownership breakdown October 16, 2022

What Does Institutional Ownership Tell Us About ChargePoint Holdings?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. As such, they typically consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a significant stake in ChargePoint Holdings. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. If several institutes change their opinion on a stock at the same time, the share price could fall quickly. It’s therefore worth checking out ChargePoint Holdings’ earnings history below. Of course, what really matters is the future.

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Profit and Revenue Growth
NYSE:CHPT Earnings and Revenue Growth October 16, 2022

ChargePoint Holdings is not owned by hedge funds. Linse Capital LLC is currently the largest shareholder with 12% of the outstanding shares. For comparison, the second-largest shareholder holds about 6.9% of the outstanding shares, followed by a 6.2% stake from the third-largest shareholder. In addition, CEO Pasquale Romano owns 0.8% of the company’s shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s stock, meaning the company’s stock is widely dispersed and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. Quite a few analysts cover the stock, so you can easily look at the projected growth.

Insider ownership of ChargePoint holdings

The definition of an insider may differ slightly from country to country, but board members always count. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

In general, I think insider ownership is a good thing. In some cases, however, it becomes more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares of ChargePoint Holdings, Inc. The insiders have a significant stake worth $94 million. Most would see this as a really positive thing. If you’re interested in investigating insider targeting, you can click here to see if insiders bought or sold.

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General Public Property

The general public — including retail investors — own 42% of the shares in the company, so it can’t be easily ignored. While this ownership may not be sufficient to sway a policy decision in their favor, they can still collectively influence company policy.

Private Equity Ownership

With a 24% stake, private equity firms could influence ChargePoint Holdings’ board. This might encourage some investors, as private equity is sometimes able to promote strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after listing it publicly.

Next Steps:

While it’s worth considering the different groups that own a business, there are other factors that are even more important. Case in point: We discovered it 4 Warning Signs for ChargePoint Holdings you should be aware of this.

But ultimately it is the future, not the past that determines how well the owners of this business will do. Therefore, we think it’s wise to take a look at this free report that shows whether analysts are predicting a brighter future.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

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

The assessment is complex, but we help to simplify it.

find out if ChargePoint Holdings may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

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