Private equity firms account for 44% of CCC Intelligent Solutions Holdings Inc.’s (NASDAQ:CCCS) ownership, while institutions account for 40%

Key Insights

If you want to know who really controls CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), then you’ll have to look at the makeup of its share registry. We can see that private equity firms own the lion’s share in the company with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutions, on the other hand, account for 40% of the company’s stockholders. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies.

In the chart below, we zoom in on the different ownership groups of CCC Intelligent Solutions Holdings.

Check out our latest analysis for CCC Intelligent Solutions Holdings

What Does The Institutional Ownership Tell Us About CCC Intelligent Solutions Holdings?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that CCC Intelligent Solutions Holdings 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at CCC Intelligent Solutions Holdings’ earnings history below. Of course, the future is what really matters.

We note that hedge funds don’t have a meaningful investment in CCC Intelligent Solutions Holdings. Advent International, L.P. is currently the company’s largest shareholder with 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.4% and 5.9% of the stock. Furthermore, CEO Githesh Ramamurthy is the owner of 3.3% of the company’s shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CCC Intelligent Solutions Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 CCC Intelligent Solutions Holdings Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$263m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public– including retail investors — own 12% stake in the company, and hence can’t easily be ignored. 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 44%, private equity firms could influence the CCC Intelligent Solutions Holdings board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.