Key findings

• The significant control of individual investors over Pagaya Technologies means that the public has more influence on management and governance-related decisions
• A total of 8 investors own the majority of the company with 51%
• Insiders have recently sold

To get a sense of who really has control of Pagaya Technologies Ltd. (NASDAQ:PGY), it’s important to understand the company’s ownership structure. And the group that holds the largest piece of the pie is individual investors at 31%. That means the group benefits the most when the stock rises (or loses the most when there’s a downturn).

While private investors’ holdings took a hit after last week’s 11 percent drop in share prices, institutional investors also suffered with their 24 percent holdings.

Let’s dive deeper into each ownership type of Pagaya Technologies, starting with the table below.

Check out our latest analysis for Pagaya Technologies

What does institutional ownership tell us about Pagaya Technologies?

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 their registry, especially if they’re growing.

As you can see, institutional investors own a sizeable stake in Pagaya Technologies. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. Even they are sometimes wrong. It is not uncommon for the share price to fall sharply when two large institutional investors try to sell a stock at the same time, so it is worth checking Pagaya Technologies’ past earnings history (see below). Of course, remember that there are other factors to consider too.

Hedge funds don’t own a lot of shares in Pagaya Technologies. The company’s largest shareholder is Viola Ventures, with an 11% stake. In comparison, the second and third largest shareholders hold about 7.7% and 7.1% of the shares, respectively. Gal Krubiner, the third largest shareholder, also happens to be a member of the board of directors.

We also found that the eight largest shareholders own half of the share register and that some smaller shareholders balance the interests of the larger shareholders to some extent.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. There are a significant number of analysts covering the stock, so it might be useful to find out their aggregate view of the future.

Insider ownership of Pagaya Technologies

The definition of an insider may vary slightly in different countries, but members of the board of directors are always included. The company’s management is accountable to the board of directors, which should represent the interests of the shareholders. In particular, top managers are sometimes on the board of directors themselves.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, high insider ownership can also give enormous power to a small group within the company. This can be negative in some circumstances.

According to our information, insiders hold a significant stake in Pagaya Technologies Ltd. Insiders own $175 million worth of shares in the $898 million company. This could indicate that the founders still own a lot of shares. Click here to see if they have bought or sold.

Public property

The general public – including retail investors – owns 31% of the company’s shares and therefore cannot be ignored. While this group does not necessarily call the shots, it can certainly have a real influence on how the company is run.

Private equity ownership

With a 19% share, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity sticking around for the long term, but generally they have a shorter investment horizon and – as the name suggests – do not invest much in publicly traded companies. After some time, they may look to sell the capital and deploy it elsewhere.

Private company ownership

We can see that private companies own 6.0% of the shares outstanding. It might be worth investigating this further. If related parties, such as insiders, have an interest in one of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is worth considering the different groups that own a company, there are other factors that are even more important. For example, we found 3 warning signs for Pagaya Technologies that you should know before investing here.

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.