Key Insights
- Significant control over Energy Vault Holdings by general public implies that this group likely has considerable sway over management and governance-related decisions
- The top 9 shareholders own 50% of the company
- Insiders own 16% of Energy Vault Holdings
If you want to know who really controls Energy Vault Holdings, Inc. (NYSE:NRGV), then you’ll have to look at the makeup of its share registry. We can see that individual investors own the lion’s share in the company with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, individual investors as a group endured the highest losses last week after market cap fell by US$58m.
Let’s delve deeper into each type of owner of Energy Vault Holdings, beginning with the chart below.
Check out our latest analysis for Energy Vault Holdings
What Does The Institutional Ownership Tell Us About Energy Vault Holdings?
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.
Energy Vault Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Energy Vault Holdings’ historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in Energy Vault Holdings. The company’s largest shareholder is SoftBank Investment Advisers (UK) Limited, with ownership of 13%. Meanwhile, the second and third largest shareholders, hold 11% and 6.7%, of the shares outstanding, respectively. Robert Piconi, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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.
Insider Ownership Of Energy Vault Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Energy Vault Holdings, Inc.. It has a market capitalization of just US$347m, and insiders have US$56m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 39% stake in Energy Vault Holdings. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
With a stake of 26%, private equity firms could influence the Energy Vault Holdings board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 2 warning signs for Energy Vault Holdings you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
Valuation is complex, but we’re helping make it simple.
Find out whether Energy Vault Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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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