Do Insiders Own Lots Of Shares In Audacy, Inc. (NYSE:AUD)?




  • In Business
  • 2022-08-12 11:36:04Z
  • By Simply Wall St.
 

Every investor in Audacy, Inc. (NYSE:AUD) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don't tell me what you think, tell me what you have in your portfolio.

Audacy is not a large company by global standards. It has a market capitalization of US$107m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Audacy.

View our latest analysis for Audacy

What Does The Institutional Ownership Tell Us About Audacy?

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 Audacy 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Audacy's historic earnings and revenue below, but keep in mind there's always more to the story.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Audacy. Joseph Field is currently the largest shareholder, with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.4% and 5.8%, of the shares outstanding, respectively. Furthermore, CEO David Field is the owner of 5.3% of the company's shares.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Audacy

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Audacy, Inc.. Insiders have a US$20m stake in this US$107m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Audacy. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Audacy (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Booktopia Group Limited (ASX:BKG) insiders placed bullish bets worth AU$11m in the last 12 months
Booktopia Group Limited (ASX:BKG) insiders placed bullish bets worth AU$11m in the last 12 months

Quite a few insiders have dramatically grown their holdings in Booktopia Group Limited ( ASX:BKG ) over the past 12...

Institutional owners may take dramatic actions as Lincoln Electric Holdings, Inc.
Institutional owners may take dramatic actions as Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) recent 7.5% drop adds to one-year losses

Every investor in Lincoln Electric Holdings, Inc. ( NASDAQ:LECO ) should be aware of the most powerful shareholder...

Insiders may be rethinking their US$2.5m Nova Leap Health Corp. (CVE:NLH) investment now that the company has lost CA$3.5m in value
Insiders may be rethinking their US$2.5m Nova Leap Health Corp. (CVE:NLH) investment now that the company has lost CA$3.5m in value

The recent price decline of 13% in Nova Leap Health Corp.'s ( CVE:NLH ) stock may have disappointed insiders who bought...

In the wake of Tate & Lyle plc
In the wake of Tate & Lyle plc's (LON:TATE) latest UK£96m market cap drop, institutional owners may be forced to take severe actions

A look at the shareholders of Tate & Lyle plc ( LON:TATE ) can tell us which group is most powerful. The group holding...

Redbubble Limited (ASX:RBL) has caught the attention of institutional investors who hold a sizeable 41% stake
Redbubble Limited (ASX:RBL) has caught the attention of institutional investors who hold a sizeable 41% stake

A look at the shareholders of Redbubble Limited ( ASX:RBL ) can tell us which group is most powerful. With 41% stake...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business