Private equity firms account for 37% of The Oncology Institute, Inc.'s (NASDAQ:TOI) ownership, while institutions account for 25%
Key Insights
-
Oncology Institute's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
-
The top 5 shareholders own 55% of the company
A look at the shareholders of The Oncology Institute, Inc. (NASDAQ:TOI) can tell us which group is most powerful. We can see that private equity firms own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 25% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of Oncology Institute, beginning with the chart below.
See our latest analysis for Oncology Institute
What Does The Institutional Ownership Tell Us About Oncology Institute?
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.
As you can see, institutional investors have a fair amount of stake in Oncology Institute. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Oncology Institute, (below). Of course, keep in mind that there are other factors to consider, too.
Oncology Institute is not owned by hedge funds. M33 Growth, LLC is currently the company's largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder. Additionally, the company's CEO Daniel Virnich directly holds 0.8% of the total shares outstanding.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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. There is some analyst coverage of the stock, but it could still become more well known, with time.