Chicken Soup for the Soul Entertainment, Inc.’s (NASDAQ:CSSE) market cap touched US$143m last week, benefiting both private companies who own 39% as well as institutions

Each investor in Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) should be aware of the most powerful shareholder groups. And the group that owns the biggest piece of the pie is private companies with 39% ownership. In other words, the group faces maximum upside potential (or downside risk).

While private companies were the group that benefited the most from last week’s US$15 million capitalization gain, institutions also had a 23% share of those gains.

Let’s dive into each type of Chicken Soup for the Soul Entertainment owner, starting with the chart below.

check it opportunities and risks in the US entertainment industry.

NasdaqGM: CSSE Ownership Analysis November 13, 2022

What does institutional ownership tell us about chicken soup for entertainment?

Institutional investors typically compare their own returns to the returns of a widely followed index. Thus, they generally consider buying larger companies included in the relevant benchmark.

As you can see, institutional investors have quite a stake in Chicken Soup for the Soul Entertainment. This means that analysts working for these institutions have looked at the stock and like it. But like anyone else, they can be wrong. It is not unusual to see a large drop in the stock price if two large institutional investors try to sell a stock at the same time. So it’s worth checking out Chicken Soup for the Soul Entertainment’s past earnings history (below). Of course, keep in mind that there are other factors to consider.

increase profits and revenues
NasdaqGM: CSSE Earnings and Revenue Increase November 13, 2022

Chicken Soup for the Soul Entertainment is not owned by hedge funds. Chicken Soup for the Soul Holdings, LLC is currently the company’s largest shareholder with 39% of the shares outstanding. With 17% and 5.7% of shares outstanding respectively, Apollo Global Management, Inc. and Granahan Investment Management, LLC are the second and third largest shareholders. In addition, CEO William Rouhana is the owner of 1.6% of the company’s shares.

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After digging further, we found that the top 2 shareholders collectively control more than half of the company’s shares, implying that they have significant power to influence company decisions.

Institutional ownership research is a good way to gauge and filter a stock’s expected return. The same can be achieved by studying the sentiments of analysts. Several analysts cover the stock so you can look at the growth forecast quite easily.

Insider Ownership Of Chicken Soup for the Soul Entertainment

The definition of an insider may vary slightly between different countries, but board members always count. The management of the company runs the business, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, in some cases too much power is concentrated in this group.

We can mention that the founders own shares in Chicken Soup for the Soul Entertainment, Inc.. It has a capitalization of just US$143 million and insiders have shares worth US$6.1 million in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if these insiders have bought or sold.

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General Public Property

With an ownership percentage of 18%, the general public, consisting mainly of individual investors, has some degree of influence over Chicken Soup for the Soul Entertainment. While this size of ownership may not be enough to influence a policy decision in their favor, they can have a collective impact on company policies.

Private property

With a 17% stake, private equity firms could influence the board of Chicken Soup for the Soul Entertainment. Some may like this because private equity is sometimes activists who hold management accountable. But other times, private equity sells out, having taken the company public.

Private Company Ownership

It appears that private companies own 39% of Chicken Soup for the Soul Entertainment stock. It is difficult to draw conclusions from this fact alone, so it is worth looking at who owns these private companies. Sometimes insiders or other related parties have an interest in stock in a public company through a separate private company.

Next steps:

While it is worth considering the various groups that own a company, there are other factors that are even more important. Take risks for example – Chicken Soup for the Soul Entertainment has 2 warning signs we think you should know.

If you’re like me, you might want to think about whether this company will grow or shrink. Fortunately, you can check out this free report that shows analysts’ predictions for its future.

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Note: The figures in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last date of the month in which the financial statement is dated. This may not be consistent with full year annual report data.

Valuation is complicated, but we help make it simple.

Find out if chicken soup for entertainment is potentially overvalued or undervalued by checking our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis based on fundamentals. Please note that our analysis may not take into account the latest company announcements that are price sensitive or quality material. Simply Wall St has no position in any of the listed stocks.


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