ATLANTA - Cardlytics, Inc. (NASDAQ:CDLX), an advertising platform that partners with financial institutions to run their rewards programs, is significantly influenced by institutional investors who own 58% of the company. This level of ownership makes the stock price sensitive to their trading decisions. Among these investors, CAS Investment Partners, LLC is the largest shareholder with a 14% stake in the company. The second and third largest shareholders hold approximately 7.3% and 5.2% of the shares, respectively.
The influence of these major shareholders was felt last week when Cardlytics' market valuation dipped to $290 million. Despite a one-year gain of 67% that may have mitigated some of their losses, institutional investors were notably affected by this decline. They are likely to keep a close watch on the stock for any signs of future weakness. It is common for institutional sentiment to become more positive once a company is added to a major index, which could be favorable for Cardlytics.
In addition to institutional investors, insiders of Cardlytics also have a significant stake in the company, owning $7.6 million worth of shares. This ownership suggests an alignment between the interests of shareholders and the board. However, concerns may arise if too much control is concentrated among insiders. The general public holds a substantial 20% of the company's shares, giving them considerable influence as well.
Understanding institutional ownership can be valuable for investors researching a stock's potential. However, it is important to also consider analyst recommendations, which provide insights into expected stock performance. Presently, Cardlytics has minimal coverage by analysts, indicating potential for increased attention in the future.
For investors and shareholders alike, the performance of Cardlytics will be crucial in determining the success of their investment. It is advised to look beyond ownership data and consider other factors such as warning signs and analyst predictions when evaluating the company's prospects.
InvestingPro Insights
InvestingPro provides real-time data and tips that offer further insights about Cardlytics, Inc. According to InvestingPro, the company's market capitalization stands at $338.37 million. The adjusted P/E ratio is -0.72, indicating that the company is not profitable. Furthermore, the company's revenue has been declining at a rate of -1.16% over the last twelve months as of Q3 2023.
InvestingPro Tips shed light on some potential concerns. Cardlytics may have trouble making interest payments on its debt, and there is a declining trend in earnings per share. Furthermore, the stock has taken a significant hit over the last week, and the company has not been profitable over the last twelve months. These tips are among the many available to InvestingPro users, with a total of 18 tips currently listed for Cardlytics.
These InvestingPro insights can be valuable tools for investors as they analyze the prospects of Cardlytics. The data and tips provide a more comprehensive picture of the company's financial health and market performance.
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