With 61% ownership, Keen Vision Acquisition Corporation (NASDAQ:KVAC) boasts of strong institutional backing

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Keen Vision Acquisition's stock price might be vulnerable to their trading decisions

  • The top 7 shareholders own 52% of the company

  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Keen Vision Acquisition Corporation (NASDAQ:KVAC), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

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. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let's delve deeper into each type of owner of Keen Vision Acquisition, beginning with the chart below.

Check out our latest analysis for Keen Vision Acquisition

ownership-breakdown

What Does The Institutional Ownership Tell Us About Keen Vision Acquisition?

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.

As you can see, institutional investors have a fair amount of stake in Keen Vision Acquisition. 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. 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 Keen Vision Acquisition's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Keen Vision Acquisition is not owned by hedge funds. The company's largest shareholder is KVC Sponsor LLC, with ownership of 23%. Meanwhile, the second and third largest shareholders, hold 7.4% and 5.6%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.