SmileDirectClub, Inc. (NASDAQ: SDC) Institutional Ownership And Insider Ownership- What Do They Tell Us?


SmileDirectClub, Inc.’s (NASDAQ: SDC) market caps at $4.6 Billion. Hence, it is not possible for a stock of this value to stay under the radar for long. An in-depth study of the SDC stock’s shareholders have let out interesting information regarding this stock lately. Read on to know more.

It is known that major companies have institutional backup. Institutional investors are known to go after major companies with a long-time history. Insider ownership is more common in the case of smaller companies. Privatized companies, on the other hand, have lesser insiders.

Big Institutional Involvement In SDC Stocks: Know What It Means

However, a company that has grown as big as SDC, is expected to have both retail and institutional investors involved with its shares. According to recent reports, institutions have a fair share in SmileDirectClub, Inc. It includes 9.92% institutional holdings of this company’s stocks. This suggests that the analysts at these institutions looked up this stock and they found this to be steady.

Major institutions, before investing, look for a benchmark so that they can inform that the stock is stable while reporting to their investors. They are mostly interested in stocks that have found a place in the major index. According to current stats, these stocks are still on the rise, thus attracting more institutional ownership.

On the other hand, hedge funds don’t own much of these stocks. The biggest shareholder is Clayton, Dubilier & Rice, LLC that holds about 10% outstanding. Next to this, shareholders own about 7% and 6.2% respectively. SmileDirectClub, Inc.’s CEO David Katzman owns about 1.2% of the total outstanding SDC stocks. Insider ownership adds up to about 1% of this company’s stocks.

Since institutional investors are interested in SDC stocks, we can forecast that these stocks will show more growth in the future, as per analysts’ reports.