Arrival's (NASDAQ:ARVL) last week's 7.3% decline must have disappointed private equity firms who have a significant...
A look at the shareholders of Arrival (NASDAQ:ARVL) can tell us which group is most powerful. We can see that private equity firms own the lion's share in the company with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, private equity firms as a group endured the highest losses last week after market cap fell by US$51m.
Let's delve deeper into each type of owner of Arrival, beginning with the chart below.
NasdaqGS:ARVL Ownership Breakdown September 19th 2022
What Does The Institutional Ownership Tell Us About Arrival?
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 have a fair amount of stake in Arrival. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Arrival, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:ARVL Earnings and Revenue Growth September 19th 2022
Arrival is not owned by hedge funds. Kinetik s..r.l is currently the company's largest shareholder with 65% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 4.8% and 2.5% of the stock.
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