Every investor in Trident Acquisitions Corp. (NASDAQ:TDAC) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Trident Acquisitions is not a large company by global standards. It has a market capitalization of US$105m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Trident Acquisitions.

See our latest analysis for Trident AcquisitionsNasdaqCM:TDAC Ownership Breakdown February 16th 2021What Does The Institutional Ownership Tell Us About Trident Acquisitions?

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.

Trident Acquisitions already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Trident Acquisitions, (below). Of course, keep in mind that there are other factors to consider, too.NasdaqCM:TDAC Earnings and Revenue Growth February 16th 2021

Our data indicates that hedge funds own 13% of Trident Acquisitions. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Gennadii Butkevych is currently the company's largest shareholder with 20% of shares outstanding. Glazer Capital, LLC is the second largest shareholder owning 13% of common stock, and Ilya Ponomarev holds about 11% of the company stock. Ilya Ponomarev, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Additionally, the company's CEO Vadim Komissarov directly holds 4.4% of the total shares outstanding.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.Insider Ownership Of Trident Acquisitions

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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

It seems insiders own a significant proportion of Trident Acquisitions Corp.. Insiders have a US$43m stake in this US$105m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.General Public Ownership

The general public holds a 17% stake in Trident Acquisitions. 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 Company Ownership

Our data indicates that Private Companies hold 9.6%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Trident Acquisitions better, we need to consider many other factors. Take risks for example - Trident Acquisitions has3 warning signs(and 2 which are potentially serious) we think you should know about.

Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.

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.

This article by Simply Wall St is general in nature. 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.

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