What type of shareholders own Industrial Tech Acquisitions II, Inc. (NASDAQ:ITAQ)?

Any investor in Industrial Tech Acquisitions II, Inc. (NASDAQ:ITAQ) should be aware of the most powerful groups of shareholders. Institutions often own shares in more established companies, while it is not uncommon to see insiders own a lot of smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of $215 million, Industrial Tech Acquisitions II is a small-cap stock, so it may not be well-known to many institutional investors. Taking a look at our data on the ownership groups (below), it appears that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholders can tell us about Industrial Tech Acquisitions II.

See our latest analysis for Industrial Tech Acquisitions II

What does institutional ownership structure tell us about acquisitions in the industrial technology II sector?

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

Industrial Tech Acquisitions II already has institutions on its share registry. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we can’t rely on this fact alone, as institutions sometimes make bad investments, just like everyone else. If multiple institutions change their view on a stock at the same time, you could see the share price drop quickly. It’s therefore worth taking a look at Industrial Tech Acquisitions II’s earnings history below. Of course, the future is what really counts.

It appears that hedge funds own 6.6% of Industrial Tech Acquisitions II shares. This is interesting because hedge funds can be quite active and activist. Many of them look for medium-term catalysts that will drive the stock higher. Our data shows that Industrial Tech Partners II, LLC is the largest shareholder with 20% of the shares outstanding. Saba Capital Management, LP is the second largest shareholder with 6.6% of the common stock, and Highbridge Capital Management, LLC owns about 3.7% of the company’s shares.

A closer look at our ownership data shows that the top 12 shareholders collectively own 51% of the shares, meaning that no single shareholder has a majority of the shares.

Researching institutional ownership is a good way to evaluate and filter the expected performance of a stock. The same can be achieved by researching analyst sentiment. As far as we can tell, there is no analyst coverage of the company, so it is likely flying under the radar.

Insider Ownership of Acquisitions in the Industrial Technology Industry II

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. The board ultimately answers to the board. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

I generally think that having insiders is a good thing. However, in some cases it makes it harder for other shareholders to hold management accountable for decisions.

Our data cannot confirm that board members personally own shares. It is unusual for board members not to own at least some shares personally, so our data may be flawed. A good next step would be to check how much the CEO makes.

Public property

The general public—including retail investors—holds 32% of the company, so they can’t be easily ignored. This amount of ownership, while significant, may not be enough to change the company’s policy if the decision is not in line with other large shareholders.

Private company ownership

Our data indicates that Private Companies own 20% of the company’s shares. It’s hard to draw conclusions from this fact alone, so it’s worth looking at who owns these private companies. Sometimes insiders or other related parties have an interest in the shares of a public company through a separate private company.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we have identified 4 Warning Signs for Industrial Tech Acquisitions II (3 are a bit disturbing) you should know about.

Of course this may not be the best stock to buy. That’s why you might want to see our free a set of interesting prospects characterized by favorable financial results.

NB: The figures in this article are calculated using the last twelve months of data, which refer to the 12-month period ending on the last day of the month in which the financial statements are prepared. This may not be consistent with the figures in the annual report for the full year.

Have an opinion on this article? Concerned about the content? contact us with us directly. You can also email us at editorial-team (at) simplywallst.com.

This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. Our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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