<!-- HTML_TAG_START -->NasdaqGS:CVRX Ownership Breakdown December 30th 2024<!-- HTML_TAG_END -->
Significant control over CVRx by private equity firms implies that the general public has more power to influence management and governance-related decisions
A total of 8 investors have a majority stake in the company with 53% ownership
A look at the shareholders of CVRx, Inc. (NASDAQ:CVRX) can tell us which group is most powerful. With 39% stake, private equity firms possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 39% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of CVRx.
NasdaqGS:CVRX Ownership Breakdown December 30th 2024
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that CVRx does have institutional investors; and they hold a good portion of the company’s stock. 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 CVRx, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:CVRX Earnings and Revenue Growth December 30th 2024
Hedge funds don’t have many shares in CVRx. Johnson & Johnson Innovation – JJDC, Inc. is currently the company’s largest shareholder with 17% of shares outstanding. New Enterprise Associates, Inc. is the second largest shareholder owning 9.3% of common stock, and Vensana Capital Management, LLC holds about 7.1% of the company stock.
On further inspection, we found that more than half the company’s shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of CVRx, Inc. in their own names. It seems the board members have no more than US$2.1m worth of shares in the US$320m company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CVRx. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private equity firms hold a 39% stake in CVRx. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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