What Kind Of Investors Own Most Of Zimmer Energy Transition Acquisition Corp. (NASDAQ:ZT)?
Simply Wall St
4 min read
If you want to know who really controls Zimmer Energy Transition Acquisition Corp. (NASDAQ:ZT), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of US$417m, Zimmer Energy Transition Acquisition is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Zimmer Energy Transition Acquisition.
What Does The Institutional Ownership Tell Us About Zimmer Energy Transition Acquisition?
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 Zimmer Energy Transition Acquisition 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 Zimmer Energy Transition Acquisition, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGM:ZT Earnings and Revenue Growth April 1st 2022
Our data indicates that hedge funds own 33% of Zimmer Energy Transition Acquisition. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is Zimmer Partners, LP, with ownership of 20%. In comparison, the second and third largest shareholders hold about 7.0% and 6.3% of the stock.
On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Zimmer Energy Transition Acquisition
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 Zimmer Energy Transition Acquisition Corp. in their own names. It appears that the board holds about US$1.6m worth of stock. This compares to a market capitalization of US$417m. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zimmer Energy Transition Acquisition. 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.
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.
