If you want to know who really controls Corsair Gaming, Inc. (NASDAQ:CRSR), then you’ll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Corsair Gaming has a market capitalization of US$1.6b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows 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 Corsair Gaming.
What Does The Institutional Ownership Tell Us About Corsair Gaming?
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.
As you can see, institutional investors have a fair amount of stake in Corsair Gaming. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Corsair Gaming’s earnings history below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Corsair Gaming. EagleTree Capital, LP is currently the company’s largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder. In addition, we found that Andrew Paul, the CEO has 2.7% of the shares allocated to their name.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Corsair Gaming
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Corsair Gaming, Inc.. The insiders have a meaningful stake worth US$56m. Most would see this as a real positive. If you would like to explore the question of insider alignment.
General Public Ownership
The general public, who are usually individual investors, hold a 19% stake in Corsair Gaming. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 57%, 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.