With 74% ownership, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) boasts of strong institutional backing
In This Article:
Key Insights
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Institutions' substantial holdings in CrowdStrike Holdings implies that they have significant influence over the company's share price
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45% of the business is held by the top 25 shareholders
Every investor in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of CrowdStrike Holdings.
See our latest analysis for CrowdStrike Holdings
What Does The Institutional Ownership Tell Us About CrowdStrike 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.
We can see that CrowdStrike Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CrowdStrike Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in CrowdStrike Holdings. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 8.6%. With 7.5% and 3.8% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. Furthermore, CEO George Kurtz is the owner of 3.1% of the company's shares.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.