Coupang, Inc.'s (NYSE:CPNG) institutional investors lost 6.6% last week but have benefitted from longer-term gains
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Key Insights
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Given the large stake in the stock by institutions, Coupang's stock price might be vulnerable to their trading decisions
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A total of 7 investors have a majority stake in the company with 52% ownership
Every investor in Coupang, Inc. (NYSE:CPNG) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Losing money on investments is something no shareholder enjoys, least of all institutional investors who saw their holdings value drop by 6.6% last week. However, the 49% one-year returns may have helped alleviate their overall losses. But they would probably be wary of future losses.
Let's take a closer look to see what the different types of shareholders can tell us about Coupang.
View our latest analysis for Coupang
What Does The Institutional Ownership Tell Us About Coupang?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Coupang. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Coupang's earnings history below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Coupang. Our data shows that SB Investment Advisers (UK) Limited is the largest shareholder with 19% of shares outstanding. With 9.5% and 8.8% of the shares outstanding respectively, Baillie Gifford & Co. and Bom Suk Kim are the second and third largest shareholders. Bom Suk Kim, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.