Simply Wall St

The market capitalization of Gogoro Inc. (NASDAQ:GGR) reached $791 million last week, benefiting both individual investors who own 50% and institutions

If you want to know who really controls Gogoro Inc. (NASDAQ:GGR), then you’ll need to look at the composition of its share register. With a 50% stake, individual investors own the most shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

After an 8.0% rise in the stock price last week, individual investors benefited the most, but institutions that own 22% of the shares also benefited from the increase.

Let’s dive deeper into each owner type in Gogoro, starting with the table below.

Our analysis indicates that GGR is potentially overvalued!

distribution of property
NasdaqGS: GGR Ownership Breakdown November 5, 2022

What does institutional ownership tell us about Gogoro?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors hold a sizeable share of Gogoro. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out Gogoro’s revenue history below. Of course, the future is what really matters.

NasdaqGS: GGR Earnings and Revenue Growth November 5, 2022

Hedge funds don’t have a lot of shares in Gogoro. The company’s largest shareholder is Gold Sino Assets Limited with a 22% stake. Genesis Trust & Corporate Services Ltd. is the second largest shareholder with 11% of common stock, and Far Eastern International Bank, Asset Management Arm owns approximately 5.0% of the company’s stock.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Gogoro Insider Property

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

We can see that insiders own shares of Gogoro Inc. As individuals, insiders collectively own $49 million of the $791 million company. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.

General public property

With a 50% stake, the general public, consisting mostly of individual investors, has some influence over Gogoro. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

It appears that private companies hold 22% of Gogoro’s shares. It might be worth exploring this further. If related parties, such as insiders, have an interest in any 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:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take risks for example – Gogoro has 2 warning signs we think you should know.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

Find out if gogoro is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, 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 only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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