Every investor in MoneyLion Inc. (NYSE:ML) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 33% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Private equity firms, on the other hand, account for 30% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about MoneyLion.
Check out our latest analysis for MoneyLion
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.
MoneyLion already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at MoneyLion's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in MoneyLion. The company's largest shareholder is Edison Partners L.P., with ownership of 13%. The second and third largest shareholders are Rohit D'Souza and StepStone Group Inc., with an equal amount of shares to their name at 9.7%. Additionally, the company's CEO Diwakar Choubey directly holds 7.1% of the total shares outstanding.
We also observed that the top 7 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.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in MoneyLion Inc.. Insiders have a US$22m stake in this US$120m business. 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.
The general public, who are usually individual investors, hold a 33% stake in MoneyLion. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 30%, private equity firms could influence the MoneyLion board. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand MoneyLion better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for MoneyLion (of which 2 can't be ignored!) you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
Join A Paid User Research SessionYou'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here