Holding 49% of the shares, Colombier Acquisition Corp. II (NYSE:CLBR) has attracted interest from institutional investors

Key insights

• The significantly high level of institutional ownership means that the Colombier Acquisition II share price is sensitive to the company’s trading activities

• A total of 8 investors hold majority shares in the company with 53% of the shares

• Insiders own 20% of Colombier Acquisition II

A look at Colombier Acquisition Corp. shareholders II (NYSE:CLBR) can tell us which group is the most powerful. The maximum shares in the company are held by institutions with 49% of shares. This means that the group will benefit the most if the share value increases (or lose the most if the economy declines).

Because institutional owners have vast pools of resources and liquidity at their disposal, their investment decisions tend to be very important, especially for individual investors. Therefore, having a significant amount of institutional funds invested in a company is often considered a desirable trait.

Let’s take a closer look at each type of Colombier Acquisition II owner, starting with the table below.

See our latest analysis for the Colombier II acquisition

What does institutional ownership tell us about the Colombier II acquisition?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institution on the register, especially if they are growing.

As you can see, institutional investors have a large stake in Colombier Acquisition II. This may indicate that the company has a certain degree of credibility in the investment community. However, it is best to err on the side of caution and not rely on the supposed validation provided by institutional investors. They get it wrong sometimes too. If multiple institutions change their view on a stock at the same time, you could see the share price drop quickly. So it’s worth taking a look at Colombier Acquisition II’s earnings history below. Of course, the future is what really matters.

Our data shows that hedge funds own 13% of Colombier Acquisition II. This catches my attention because hedge funds sometimes try to influence management or make changes that will create shareholder value in the near future. Looking at our data, we see that the largest shareholder is CEO Omeed Malik with 20% of shares outstanding. For comparison, the second largest shareholder holds approximately 6.9% of the outstanding shares and the third largest shareholder holds 6.1%.

We dug deeper and found that the top 8 shareholders make up approximately 53% of the register, which means that in addition to the larger shareholders, there are several smaller shareholders, which balances each other’s interests to some extent.

The story continues

While studying institutional ownership for a company can add value to your research, it is also a good practice to look at analyst recommendations to get a better understanding of a stock’s expected performance. As far as we know, there is no analyst coverage of this company, so it is likely flying under the radar.

Confidential property in Colombier II acquisition

The definition of an insider may vary slightly from country to country, but board members always count. The company’s management is accountable to the management board, and the latter should represent the interests of shareholders. It’s worth noting that sometimes top-level managers sit on the board themselves.

I generally think that having insider information is a good thing. However, in some cases this makes it more difficult for other shareholders to hold management accountable for decisions.

It appears that much of Colombier Acquisition Corp. II is owned by insiders. Insiders own a US$44m stake in this US$220m company. We’d say this shows alignment with shareholders, but it’s worth noting that the company is still quite small; some insiders may have started a company. You can click here to see whether these insiders have been buying or selling.

Universal public ownership

With an 18% stake, the general public, consisting mainly of individual investors, has some influence over Colombier Acquisition II. This size of ownership, while significant, may not be enough to change company policy if the decision is not in line with that of other large shareholders.

Next steps:

While it’s important to consider different groups of business owners, there are other factors that are even more important. Take risks for example – Colombier Acquisition II does 3 warning signs (and 2 that are a bit unpleasant) we think you should know.

Of course it may not be the best stock to buy. So take a look at this free free list of interesting companies.

Note: The data contained in this article has been calculated on the basis of data from the last twelve months, which relates to the 12-month period ending on the last day of the month in which the financial statements were prepared. This data may not be consistent with the data included in the annual report for the entire year.

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This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.