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key insights
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Given the significant stake in the stock by financial institutions, Oportun Financial’s stock price may be sensitive to trading decisions by financial institutions
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51% of the business is owned by the top 10 shareholders
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Analyst forecasts and ownership data help give you a strong idea about business prospects
To find out who really controls Oportun Financial Corporation (NASDAQ:OPRT), it’s important to understand the business’ ownership structure. With a 53% stake, institutional investors will hold the largest stake in the company. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Because institutional investors have access to large amounts of capital, their market trends tend to be closely monitored by retail and retail investors. Therefore, having significant institutional investors invested in a company is often considered a desirable characteristic.
Let’s take a closer look at each type of owner at Oportun Financial, starting with the graph below.
Check out our latest analysis for Opportun Financial.
What does institutional ownership indicate about Oportun Financial?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often see increased enthusiasm for a stock once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
Oportun Financial already has a registered share registry. In fact, they own a significant stake in the company. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. 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 Oportun Financial’s past earnings trajectory, (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutional investors actually own more than half the company, so they can collectively wield significant power. Hedge funds appear to control 13% of Oportun Financial’s shares. This is noteworthy because hedge funds are often very active investors and may try to influence management. Many people want value creation (and stock price appreciation) in the short or medium term. Institutional Venture Partners is currently the largest shareholder with 8.9% of outstanding shares. For context, the second largest shareholder holds about 7.3% of the shares outstanding, followed by an ownership of 6.3% by the third largest shareholder. Additionally, CEO Raul Vazquez owns 2.9% of the company’s stock.
On further investigation, we found that the 10 top shareholders control around 51% of the registry. This suggests that in addition to large shareholders, there are a few small shareholders, thereby balancing each other’s interests.
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 significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership in Oportun Financial
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders 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 depending on the situation.
Shareholders would probably be interested to know that insiders own shares in Oportun Financial Corporation. The company has a market capitalization of just US$139m, but insiders have US$11m worth of shares in their own names. Some would say this indicates alignment of interests between shareholders and the board, but we generally like to see bigger insider holdings. But it might be worth checking if these insiders are selling.
Public ownership
The general public, usually retail investors, owns 18% of Oportun Financial’s shares. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
private equity ownership
Private equity firms hold an 8.9% stake and may influence Oportun Financial’s board of directors. Some investors may be encouraged by this, as private equity may be able to encourage strategies that help the market recognize a company’s value. Alternatively, those holders may withdraw from their investment after the initial public offering.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, we identified 2 warning signs for Opportun Financial (1 is not very good for us) You should know this.
after all the future is most important.You can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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