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Institutional investors hold significant sway over Nextdoor Holdings' stock

EditorAmbhini Aishwarya
Published 2023-09-05, 10:20 a/m
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Nextdoor Holdings Inc. (NYSE:KIND) is seeing substantial interest from institutional investors, who currently hold the largest stake in the company at 37%. The top ten shareholders alone own 51% of the company, potentially leaving the stock price vulnerable to their trading decisions.

The largest shareholder in Nextdoor Holdings is Benchmark, holding 14% of shares outstanding. The second and third largest shareholders hold about 8.6% and 6.4% of the shares outstanding respectively. Notably, Nirav Tolia, the third-largest shareholder, also holds the title of Member of the Board of Directors. CEO Sarah Friar owns 4.1% of the company's shares.

Insiders own a reasonable proportion of Nextdoor Holdings, Inc., with a $119 million stake in this $830 million business, indicating alignment with shareholders. However, it's worth noting that the company is still quite small; some insiders may have founded the business.

The general public holds a 16% stake in Nextdoor Holdings while Private equity firms hold a significant 30% stake in Nextdoor Holdings.

The presence of institutions on Nextdoor Holdings' share registry suggests that analysts working for these institutions have evaluated the stock positively. However, when multiple institutions own a stock, there's always a risk of a 'crowded trade', where multiple parties may compete to sell stock fast if things go wrong.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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