Painful week for private equity firms invested in Custom Truck One Source, Inc. (NYSE: CTOS) after 6.4% decline, institutions also suffered losses
To get a sense of who actually controls Custom Truck One Source, Inc. (NYSE: CTOS), it’s important to understand the ownership structure of the business. With 71% of the capital, private equity firms hold the maximum number of shares in the company. In other words, the group has everything to gain (or lose the most) from its investment in the business.
While the holdings of private equity firms were hit after prices fell 6.4% last week, institutions with their 14% holdings also suffered.
Let’s take a closer look at each type of Custom Truck One Source owner, starting with the table below.
Check out our latest review for Custom Truck One Source
What does Institutional Ownership tell us about Custom Truck One Source?
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 businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors own a large share of Custom Truck One Source. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the Custom Truck One Source earning history below. Of course, the future is what really matters.
Custom Truck One Source is not owned by hedge funds. The major shareholder of the company is Platinum Equity, LLC, which is 60% owned. This implies that they have majority control over the future of the business. With 10% and 2.7% of shares outstanding, respectively, Energy Capital Partners, LLC and Mark Ein are the second and third largest shareholders. Mark Ein, who is the third shareholder, also holds the title of member of the board of directors. Additionally, CEO Fredrick Ross owns 0.8% of the company’s shares.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some coverage from analysts, the company is probably not widely covered. He could therefore attract more attention, at the bottom of the track.
Custom Truck One Source Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own stock in Custom Truck One Source, Inc. It’s a big company, so it’s good to see that level of alignment. Insiders own $ 76 million in shares (at current prices). Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.
General public property
The general public, including retail investors, own 12% of the company’s capital and therefore cannot be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
With a 71% stake, the private equity firms could influence the board of directors of Custom Truck One Source. 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 business. Alternatively, these holders could withdraw from the investment after making it public.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we have identified 2 warning signs for Custom Truck One Source (1 is of concern) that you should be aware of.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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