Is Appian Corporation (NASDAQ:APPN) Shareholding Biased In Favor Of Insiders?
Every investor in Appian Corporation (NASDAQ:APPN) should know the most powerful shareholder groups. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. 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 wallet”.
Appian is a pretty big company. It has a market capitalization of US$3.6 billion. Normally, institutions own a significant share of a business of this size. Our analysis of societal ownership below shows that institutions own shares in society. We can zoom in on the different ownership groups, to learn more about Appian.
Check out our latest review for Appian
What does institutional ownership tell us about Appian?
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.
As you can see, institutional investors own a sizable share of Appian. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Appian’s revenue history below. Of course, the future is what really matters.
It appears that hedge funds own 11% of Appian’s shares. This is interesting because hedge funds can be very active and militant. Many are looking for medium-term catalysts that will drive the stock price higher. The company’s CEO, Matthew Calkins, is the largest shareholder with 39% of the shares outstanding. Abdiel Capital Advisors, LP is the second largest shareholder with 11% of common stock, and Baillie Gifford & Co. owns approximately 8.1% of the company’s stock.
After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.
Appian Insider Property
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
It appears that insiders own a large share of Appian Corporation. Insiders hold $1.5 billion worth of stock in the $3.6 billion company. It is quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have been buying or selling.
General public property
With a 16% stake, the general public, consisting mostly of individual investors, has some influence over Appian. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Be aware that Appian displays 4 warning signs in our investment analysis you should know…
At the end of the day 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.