If you want to know who actually controls Northern Star Investment Corp. III (NYSE: NSTC), then you will need to review the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously state-owned tend to have fewer insiders.
Northern Star Investment III is a small company with a market cap of US $ 488 million, so it may still go under the radar of many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different property groups to find out more about Northern Star Investment III.
NYSE Ownership Breakdown: NSTC December 25, 2021
What does institutional ownership tell us about Northern Star Investment III?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Northern Star Investment III already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Northern Star Investment III’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
NYSE: NSTC Profit and Revenue Growth December 25, 2021
Our data shows that hedge funds own 6.0% of Northern Star Investment III. This is worth noting, as hedge funds are often quite active investors who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. The main shareholder of the company is Northern Star III Sponsor LLC, with a 17% stake. With 6.0% and 3.5% of the shares outstanding respectively, PEAK6 Investments, LP and Adage Capital Management, LP are the second and third largest shareholders.
A closer look at our ownership figures suggests that the top 16 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. As far as we can tell, the company is not covered by analysts, so it probably goes unnoticed.
Insider ownership of Northern Star Investment III
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Northern Star Investment Corp. III. However, it is possible that insiders will have an indirect interest through a more complex structure. It has a market capitalization of only US $ 488 million and the board of directors has only US $ 2.8 million in shares in its own name. Many small business investors prefer to see the board of directors more heavily invested. You can click here to see if these insiders have bought or sold.
General public property
With a 35% stake, the general public, made up mainly of individual investors, has some influence over Northern Star Investment III. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It appears that private companies own 17% of the shares of Northern Star Investment III. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
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 3 warning signs for Northern Star Investment III (2 don’t sit too well with us) that you should be aware of.
Sure this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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