AerSale Corporation’s (NASDAQ:ASLE) market cap fell $62 million last week; Private equity firms paid the price
To get an idea of who actually controls AerSale Corporation (NASDAQ: ASLE), it’s important to understand the company’s ownership structure. The group holding the largest number of shares in the company, around 46% to be precise, are the private equity firms. In other words, the group faces the maximum upside potential (or downside risk).
As the market capitalization fell to $1.0 billion last week, private equity firms would have suffered the highest losses than any other group of shareholders in the company.
Let’s take a closer look at what different types of shareholders can tell us about AerSale.
Before looking at the breakdown of owners, note that our analysis indicates that ASLE is potentially undervalued!
What does institutional ownership tell us about AerSale?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors hold a sizeable share of AerSale. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out AerSale’s earnings history below. Of course, the future is what really matters.
Our data shows that hedge funds own 5.2% of AerSale. This catches my attention because hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Leonard Green & Partners, LP is currently the company’s largest shareholder with 46% of the shares outstanding. With respectively 5.7% and 5.5% of the outstanding shares, Nicolas Finazzo and Robert Nichols are the second and third shareholders. Note that the second and third shareholders are also CEO and Vice President respectively, which means that the major shareholders of the company are insiders.
A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 51% 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 is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.
AerSale Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Insiders seem to own a large share of AerSale Corporation. It is very interesting to see that insiders have a significant stake of $162 million in this $1.0 billion company. 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 these insiders have been buying or selling.
General public property
The general public, who are usually individual investors, hold an 18% stake in AerSale. 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 equity ownership
With a 46% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Example: we have identified 1 warning sign for AerSale you should be aware.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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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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