retail investors who own 51% along with institutions invested in ClearPoint Neuro, Inc. (NASDAQ:CLPT) saw increase in their holdings value last week

Key Insights

• The considerable ownership by retail investors in ClearPoint Neuro indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 38% of the company
• Institutional ownership in ClearPoint Neuro is 41%

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A look at the shareholders of ClearPoint Neuro, Inc. (NASDAQ:CLPT) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 12% increase in the stock price last week, retail investors profited the most, but institutions who own 41% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about ClearPoint Neuro.

View our latest analysis for ClearPoint Neuro

What Does The Institutional Ownership Tell Us About ClearPoint Neuro?

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.

We can see that ClearPoint Neuro does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of ClearPoint Neuro, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in ClearPoint Neuro. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 6.3% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.0% and 4.3%, of the shares outstanding, respectively. Furthermore, CEO Joseph Burnett is the owner of 0.8% of the company's shares.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of ClearPoint Neuro

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can report that insiders do own shares in ClearPoint Neuro, Inc.. As individuals, the insiders collectively own US$21m worth of the US$406m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 51% of ClearPoint Neuro shares. 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.

Public Company Ownership

It appears to us that public companies own 3.0% of ClearPoint Neuro. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - ClearPoint Neuro has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.