Veritone (NASDAQ:VERI), Inc., a company included in benchmark indices, witnessed a significant $13 million drop in its market capitalization, affecting both retail and institutional investors. Retail investors, who account for about 48% of the company's shareholder structure, bore the brunt of this decline. Institutional investors, making up 39% of the shareholder base, were also impacted by this event.
The shareholder structure of Veritone is dominated by retail investors. The top quarter of these investors collectively own almost half of the company. However, the recent market cap drop had a severe impact on their holdings.
Institutional investors have shown interest in Veritone due to its inclusion in benchmark indices. However, they face risks from large-scale sell-offs that can lead to substantial share price drops.
Hedge funds hold a minor stake in Veritone, with Banta Asset Management LP being the largest shareholder at 6.8%. They are followed closely by two other shareholders holding approximately 6.7% and 6.6% respectively. Ryan Steelberg, the third-largest shareholder who also sits on the Board of Directors, holds a significant stake in the company as well.
This event underscores the volatility faced by shareholders in companies like Veritone and highlights the potential risks associated with large-scale sell-offs that can significantly impact share prices.
InvestingPro Insights
According to InvestingPro, Veritone operates with a significant debt burden and may face trouble making interest payments on its debt. This could potentially contribute to the volatility experienced by the company's shareholders. On a positive note, Veritone has consistently increased its earnings per share and boasts impressive gross profit margins.
InvestingPro data also reveals that Veritone's stock price movements are quite volatile, which aligns with the recent drop in market capitalization. Additionally, the company is currently trading near its 52-week low, further emphasizing the recent financial distress.
For those interested in a more comprehensive analysis, InvestingPro offers an additional 12 tips related to Veritone's financial health and market performance. This information can be particularly useful for investors seeking to navigate the company's volatile market conditions.
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