After losing 34% in the past year, Sight Sciences, Inc. (NASDAQ:SGHT) institutional owners must be relieved by the recent gain

SIGHT SCIENCES, INC. -1.81%

SIGHT SCIENCES, INC.

SGHT

8.16

-1.81%

Key Insights

  • Significantly high institutional ownership implies Sight Sciences' stock price is sensitive to their trading actions
  • A total of 8 investors have a majority stake in the company with 52% ownership

If you want to know who really controls Sight Sciences, Inc. (NASDAQ:SGHT), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 33% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would appreciate the 20% increase in share price last week, given their one-year losses have totalled a disappointing 34%.

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

ownership-breakdown
NasdaqGS:SGHT Ownership Breakdown May 30th 2024

What Does The Institutional Ownership Tell Us About Sight Sciences?

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 Sight Sciences. 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 Sight Sciences, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:SGHT Earnings and Revenue Growth May 30th 2024

Sight Sciences is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Paul Badawi with 10% of shares outstanding. The second and third largest shareholders are Allegro Investment Inc. and KCK Group, with an equal amount of shares to their name at 9.4%.

We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Sight Sciences

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Sight Sciences, Inc.. Insiders own US$60m worth of shares in the US$298m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sight Sciences. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 19%, private equity firms could influence the Sight Sciences board. 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.

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.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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