To get a sense of who really controls Sculptor Capital Management, Inc. (NYSE: SCU), it’s important to understand the company’s ownership structure. With 48% of the capital, the institutions hold the maximum number of shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
As a result, institutional investors suffered the highest losses last week after the market capitalization plummeted by $38 million. Needless to say, the recent loss on top of shareholders’ year-on-year loss of 42% may not go down well, especially with this class of shareholders. Institutions or “liquidity providers” control large sums of money and therefore these types of investors usually have a lot of influence over stock price movements. Therefore, if Sculptor Capital Management’s stock price weakness continues, institutional investors may feel compelled to sell the stock, which may not be ideal for individual investors.
Let’s take a closer look at what different types of shareholders can tell us about Sculptor Capital Management.
See our latest analysis for Sculptor Capital Management
What does institutional ownership tell us about Sculptor Capital Management?
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.
We can see that Sculptor Capital Management has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Sculptor Capital Management’s historic earnings and revenue below, but keep in mind there’s always more to tell.
Hedge funds don’t have a lot of shares in Sculptor Capital Management. With a 13% stake, CEO James Levin is the largest shareholder. Robert Shafir is the second largest shareholder with 6.9% of common stock and BlackRock, Inc. owns approximately 5.7% of the company’s stock.
After digging a little deeper, we found that the top 11 held a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.
Insider ownership of Sculptor Capital Management
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Insiders appear to own a large share of Sculptor Capital Management, Inc. Insiders own $129 million worth of stock in the $521 million company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
The general public, generally individual investors, owns 22% of the capital of Sculptor Capital Management. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private equity ownership
The private equity firms hold a 5.1% stake in Sculptor Capital Management. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.
It is always useful to think about the different groups that own shares in a company. But to better understand Sculptor Capital Management, we need to consider many other factors. Take risks for example – Sculptor Capital Management has 2 warning signs we think you should know.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and 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 financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.