Aurora Innovation, Inc. (NASDAQ:AUR) most popular amongst public companies who own 33% of the shares, institutions hold 26%

To get a sense of who is truly in control of Aurora Innovation, Inc. (NASDAQ:AUR), it is important to understand the ownership structure of the business. With a 33% stake, public companies own the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 26% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

In the chart below, we zoom in on the different ownership groups of Aurora Innovation.

Check out our latest analysis for Aurora Innovation

NasdaqGS: GOLD Ownership Breakdown August 9th 2022

What Does The Institutional Ownership Tell Us About Aurora Innovation?

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.

Aurora Innovation already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Aurora Innovation’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: GOLD Earnings and Revenue Growth August 9th 2022

Aurora Innovation is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Uber Technologies, Inc. with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 6.6% of the stock. Christopher Urmson, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 50% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 understanding of a stock’s expected performance. 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 Aurora Innovation

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. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Aurora Innovation, Inc.. It has a market capitalization of just US$3.0b, and insiders have US$659m worth of shares in their own names. That’s quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With an 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aurora Innovation. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 6.6%, private equity firms could influence the Aurora Innovation board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taken the company public.

Public Company Ownership

We can see that public companies hold 33% of the Aurora Innovation shares on issue. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Aurora Innovation better, we need to consider many other factors. For example, we’ve discovered 4 warning signs for Aurora Innovation (2 are concerning!) that you should be aware of before investing here.

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.

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 into account 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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