AgileThought, Inc. (NASDAQ:AGIL) Stock Price Falls 14% Last Week; individual investors would not be happy

If you want to know who really controls AgileThought, Inc. (NASDAQ: AGIL), then you’ll have to look at the composition of its share registry. And the group that holds the biggest slice of the pie are individual investors with 58% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

While insiders who hold 20% have been under pressure after the market capitalization fell to $199 million last week, individual investors suffered the most losses.

Let’s dive deeper into each owner type in AgileThought, starting with the table below.

Check out our latest analysis for AgileThought

NasdaqCM: AGIL Ownership Breakdown May 15, 2022

What does institutional ownership tell us about AgileThought?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors have a sizeable stake in AgileThought. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes 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 AgileThought’s revenue history below. Of course, the future is what really matters.

NasdaqCM: AGIL Earnings and Revenue Growth May 15, 2022

Hedge funds don’t have a lot of shares in AgileThought. Looking at our data, we can see that the largest shareholder is CEO Manuel Fernandez with 10% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 9.5% and 4.5% of the outstanding shares respectively. Interestingly, the third shareholder, Diego Zavala, is also a member of the board, again indicating strong insider ownership among the company’s major shareholders.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Insider property of AgileThought

The definition of an insider may differ slightly from country to country, but board members still matter. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders hold a significant stake in AgileThought, Inc. Insiders hold a $40 million stake in this $199 million company. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.

General public property

The general public, consisting primarily of individual investors, collectively owns 58% of AgileThought’s stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private equity ownership

With a 9.5% stake, private equity firms could influence AgileThought’s board. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we have identified 3 warning signs for AgileThought (1 is significant) which you should be aware of.

Ultimately 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.

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.

Karen J. Nelson