Could the ownership structure of Cambium Networks Corporation (NASDAQ: CMBM) tell us anything useful?
If you want to know who really controls Cambium Networks Corporation (NASDAQ: CMBM), then you will need to look at the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously owned by the state tend to have fewer insiders.
With a market cap of $ 967 million, Cambium Networks is a decent size, so it’s probably on the radar of institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s dig deeper into each type of owner, to find out more about Cambium Networks.
See our latest analysis for Cambium networks
What does institutional ownership tell us about Cambium networks?
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 businesses to have some institutions listed, especially if they are growing.
We can see that Cambium Networks has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Cambium Networks’ past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Cambium Networks. Vector Capital is currently the largest shareholder, with 54% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. Driehaus Capital Management LLC is the second largest shareholder holding 4.3% of the common shares, and Atul Bhatnagar owns approximately 2.8% of the shares of the company. Atul Bhatnagar, who is the third shareholder, also holds the title of member of the board of directors.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of Cambium Networks
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
We can see that the insiders own shares in Cambium Networks Corporation. In their own name, the insiders own US $ 37 million worth of shares in the US $ 967 million company. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public holds 11% of the capital of Cambium Networks. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Private equity firms hold a 54% stake in Cambium Networks. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for Cambium networks you must be aware.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last day of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.
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