What type of shareholders make up the share register of HCM Acquisition Corp (NASDAQ:HCMA)?

The large shareholder groups of HCM Acquisition Corp (NASDAQ:HCMA) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that were previously publicly owned tend to have less insider ownership.

HCM Acquisition is not a large company by global standards. It has a market cap of US$376 million, which means it wouldn’t get the attention of many institutional investors. In the graph below, we can see that the institutions are visible on the share register. Let’s dig deeper into each owner type to learn more about HCM Acquisition.

Check out our latest analysis for HCM Acquisition

distribution of property

What does institutional ownership tell us about the acquisition of HCM?

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.

As you can see, institutional investors hold a significant share of HCM Acquisition. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of HCM Acquisition below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

HCM Acquisition does not belong to hedge funds. Hondius Capital Management, LP is currently the company’s largest shareholder with 27% of the shares outstanding. For context, the second largest shareholder owns approximately 4.0% of the outstanding shares, followed by 3.2% ownership by the third largest shareholder.

A closer look at our ownership data shows that the top 11 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Insider ownership of HCM acquisition

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our data suggests that insiders hold less than 1% of HCM Acquisition Corp in their own name. It appears that the board holds approximately US$752,000 worth of stock. This compares to a market capitalization of US$376 million. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free summary of insider buying and selling.

General public property

The general public, who are usually retail investors, have a substantial 60% stake in HCM Acquisition, which suggests it’s a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Like risks, for example. Every business has them, and we’ve spotted 3 warning signs for HCM acquisition (of which 1 does not suit us too much!) that you should know.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Comments are closed.