AirJoule Technologies Corporation's (NASDAQ:AIRJ) market cap surged US$70m last week, individual investors who have a lot riding on the company were rewarded
Significant control over AirJoule Technologies by individual investors implies that the general public has more power to influence management and governance-related decisions
54% of the business is held by the top 3 shareholders
A look at the shareholders of AirJoule Technologies Corporation (NASDAQ:AIRJ) can tell us which group is most powerful. With 37% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, individual investors were the biggest beneficiaries of last week’s 21% gain.
In the chart below, we zoom in on the different ownership groups of AirJoule Technologies.
NasdaqCM:AIRJ Ownership Breakdown November 16th 2024
What Does The Institutional Ownership Tell Us About AirJoule Technologies?
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.
Institutions have a very small stake in AirJoule Technologies. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
NasdaqCM:AIRJ Earnings and Revenue Growth November 16th 2024
AirJoule Technologies is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Three Curve Capital LP with 34% of shares outstanding. With 14% and 6.3% of the shares outstanding respectively, Matthew Jore and James Pallotta are the second and third largest shareholders. Matthew Jore, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of AirJoule Technologies
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.
It seems insiders own a significant proportion of AirJoule Technologies Corporation. Insiders have a US$104m stake in this US$390m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over AirJoule Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
Private equity firms hold a 34% stake in AirJoule Technologies. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
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 3 warning signs for AirJoule Technologies you should be aware of, and 2 of them are concerning.
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.
