Satellogic Inc.'s (NASDAQ:SATL) stock price dropped 29% last week; private companies would not be happy

Yahoo

28-02-2025

Satellogic's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
60% of the business is held by the top 4 shareholders
Insiders own 15% of Satellogic
A look at the shareholders of Satellogic Inc. (NASDAQ:SATL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 33% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, private companies as a group endured the highest losses last week after market cap fell by US$111m.
Let's take a closer look to see what the different types of shareholders can tell us about Satellogic.
See our latest analysis for Satellogic
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Institutions have a very small stake in Satellogic. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Satellogic. Looking at our data, we can see that the largest shareholder is Liberty 77 Capital L.P. with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 14% of the stock. Emiliano Kargieman, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
On looking further, we found that 60% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Satellogic Inc.. Insiders have a US$44m stake in this US$289m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Satellogic. 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.
With an ownership of 21%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
We can see that Private Companies own 33%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand Satellogic better, we need to consider many other factors. Take risks for example - Satellogic has 1 warning sign we think you should be aware of.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
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