A look at the shareholders of AEA-Bridges Impact Corp. (NYSE:IMPX) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of US$395m, AEA-Bridges Impact is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about AEA-Bridges Impact.

See our latest analysis for AEA-Bridges Impact

What Does The Institutional Ownership Tell Us About AEA-Bridges Impact?

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 institutions on the register, especially if they are growing.

We can see that AEA-Bridges Impact does have institutional investors; and they hold a good portion of the company's stock. 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 AEA-Bridges Impact's earnings history below. Of course, the future is what really matters.

It looks like hedge funds own 9.0% of AEA-Bridges Impact shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Aea-Bridges Impact Sponsor Llc is currently the largest shareholder, with 20% of shares outstanding. For context, the second largest shareholder holds about 7.2% of the shares outstanding, followed by an ownership of 5.0% by the third-largest shareholder. John Garcia, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.