If you want to know who really controls Priority Technology Holdings, Inc. (NASDAQ: PRTH ), then you have to look at the makeup of its stock register. The group of people who own the most shares in the company, around 78% to be exact, are individual insiders. In other words, the group faces the greatest upside potential (or downside risk).
The group owns the largest stake in the company, despite recent stock sales by insiders. The group was also the biggest loser, following a 10 percent drop in its shares last week.
Let’s dig into each type of owner of Priority Technology Holdings starting with the table below.
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What does institutional ownership tell us about Priority Technology Holdings?
Institutions typically measure themselves against benchmarks when reporting to their own investors, so they tend to be more enthusiastic about a stock once it’s included in a major index. We expect most companies to have some agency on the books, especially if they are growing.
Priority Technology Holdings already has a body on the share registry. In fact, they own a sizeable stake in the company. This means that the analysts who work for these institutions have seen the stock and they like it. But like everyone else, they could be wrong. When multiple institutions own a stock, they always run the risk of being in a “crowded trade”. When such a deal goes wrong, multiple parties can race to sell shares quickly. This risk is higher in companies without a history of growth. You can view Priority Technology Holdings’ historical earnings and revenue below, but remember there’s always more to the story.
Hedge funds don’t own much of Priority Technology Holdings. CEO Thomas Priore owns 61 percent of the shares, making it the largest shareholder. With such a large stake, we infer that they have significant control over the future of the company. It’s usually considered a good sign when an insider owns a large stake in a company, and in this case, we’re delighted to see a company insider play such a role in the game. John Priore and Stone Point Capital LLC hold 12% and 6.8% of the outstanding shares, respectively, and are the second and third largest shareholders.
Researching institutional ownership is a great way to measure and filter the expected performance of stocks. The same effect can be achieved by studying the analyst’s sentiment. There are a few analysts covering the stock, but it could still become better known over time.
Insider ownership of Priority Technology Holdings
The definition of a company insider can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, at least including board members. Management is ultimately accountable to the board of directors. However, it is not uncommon for managers to serve as executive board members, especially if they are founders or CEOs.
It is positive when insider ownership shows that leadership thinks like the real owners of the company. However, high insider ownership can also confer enormous power on a small group of people within the company. In some cases this can be negative.
Insiders appear to own more than half of Priority Technology Holdings, Inc. stock. This gives them a lot of power. So, they own a $288 million stake in the $369 million business. Most would be happy to see the board investing with them.you might as well find out (free) If they have been buying and selling.
General public ownership
With 10% ownership, the public, consisting mostly of individual investors, has some leverage over Priority Technology Holdings. While ownership on this scale may not be enough to turn policy decisions in their favor, they can still have a collective influence on company policy.
With 6.8% ownership, the private equity firm can play a role in the development of corporate strategy focused on value creation. Some investors may be encouraged by this, because private equity can sometimes encourage strategies that help the market see value in companies. Alternatively, these holders may exit their investment after it is made public.
It is always worth considering the different groups that own shares in a company. But to understand Priority Technology Holdings better, we need to consider many other factors. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs With Priority Technology Holdings (at least 1 related), getting to know them should be part of your investing process.
If you’re anything like me, you’re probably wondering whether this company will grow or shrink. Luckily, you can check out this free report showing analysts’ forecasts for its future.
Note: Figures in this article are calculated using data from the trailing 12 months, which refers to the 12-month period ending on the last day of the month on which the financial statements are dated. This may not be consistent with the annual reported figures for the full year.
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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by 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 positions in any of the stocks mentioned.