Backblaze, Inc. (NASDAQ:BLZE) adds $25 million in market capitalization and experts have a 39% share of that gain

Key ideas

  • Significant internal control over Backblaze implies a vested interest in the growth of the company
  • The top 25 shareholders own 47% of the company.
  • owns 13% of Backblaze

Each investor in Backblaze, Inc. (NASDAQ:BLZE) should be aware of the most powerful shareholder groups. The group that owns the largest number of shares in the company, around 39% to be exact, is individual insiders. In other words, the group can earn more (or lose more) on its investment in the company.

As a result, experts scored highest last week when the company reached a market capitalization of US$201 million after a 14% gain in shares.

Let’s take a closer look to see what different types of shareholders can tell us about Backblaze.

Check out our latest Backblaze review

property breakdown
NasdaqGM: BLZE Ownership Breakdown Jan 3, 2023

What does institutional ownership tell us about Backblaze?

Institutions often measure themselves against a benchmark when reporting to their own investors, so they often become more excited about a stock once it’s included in a major index. We would expect most companies to have some institutions on record, especially if they are growing.

Backblaze already has institutions on the stock register. In fact, they own a respectable stake in the company. This implies that the analysts who work for those institutions have looked at the stock and like it. But just like anyone else, they could be wrong. It is not uncommon 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 reviewing Backblaze’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-income-growth
NasdaqGM: BLZE Earnings and Revenue Growth Jan 3, 2023

We note that hedge funds do not have a significant investment in Backblaze. TMT Investments PLC is currently the company’s largest shareholder with 11% of the outstanding shares. The second and third largest shareholders are Gleb Budman and Hang Ng Kwok, with an equal number of shares to their names of 7.9%. Gleb Budman, who is the second largest shareholder, also has the title of Chief Executive Officer.

A deeper look at our ownership data shows that the top 25 shareholders collectively own less than half of the record, suggesting a large group of small owners where no single shareholder has a majority.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analyst sentiment to see which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be helpful to get their aggregate view on the future.

Backblaze Internal Property

The definition of company insiders can be subjective and varies between jurisdictions. Our data reflects individual inside information, capturing board members at a minimum. The company’s management runs the business, but the CEO will answer to the board, even if he is a member of the board.

Internal ownership is positive when it indicates that the leaders are thinking like the true owners of the company. However, high internal ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Backblaze, Inc. Insiders own $79 million worth of shares in the $201 million company. We’d say this shows alignment with shareholders, but it’s worth noting that the company is still quite small; some experts may have founded the business. You can click here to see if those experts have been buying or selling.

general public property

The general public, including retail investors, owns a 37% stake in the company and therefore cannot be easily ignored. While this group may not necessarily call the shots, they can certainly have a real influence on the way the company is run.

private equity ownership

Private equity firms have an 11% stake in Backblaze. This suggests that they can influence key political decisions. Sometimes we see private equity stick around for the long haul, but generally speaking they have a shorter investment horizon and, as the name suggests, don’t invest much in public companies. After a while, they may look to sell and redistribute the capital elsewhere.

Next steps:

While the different groups that own a business are worth considering, there are other factors that are even more important. Like risks, for example. All companies have them, and we have seen 4 Warning Signs for Backblaze (of which 1 should not be ignored!) that you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily you can check This free report showing analyst forecasts for your future.

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 day of the month in which the financial statement is dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we are helping to simplify it.

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This Simply Wall St article is general in nature. We provide feedback based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St does not have a position in any of the mentioned stocks.

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