Small individual shareholders, holding up to 40 percent of Disney's shares, are playing a significant role in the company's boardroom battle against activist investor Nelson Peltz, who is seeking two board seats. Unlike most global companies, Disney has been actively engaging with individual shareholders through political-style campaign materials, recognizing their potential influence in the proxy battle, which is one of the most expensive in history.
Individual investors, who own 32% of NIO Inc. (NYSE:NIO), suffered significant losses after a 15% drop in the stock price last week, while institutions, with a 29% ownership, also experienced losses. The top 6 shareholders collectively own 53% of the company, indicating significant influence from the larger public. Analysts suggest that studying institutional ownership and analyst sentiments, along with insider and public company ownership, is crucial for understanding the dynamics of NIO's stock.
According to RBC, individual investors' bearish sentiment towards the stock market is a contrarian buy signal that historically has led to a 15% gain. RBC's analysis shows that when individual investors are pessimistic, it's usually a good time to buy stocks.
Individual investors bought a net $77.7 billion in equities and ETFs on U.S. exchanges in the first quarter of 2023, indicating their continued interest in stocks. However, they appear to have learned some lessons in risk-taking as the sum trails only the first quarters of 2021 and 2022, when they bought about $80 billion.
Individual investors are losing interest in U.S. stocks, leaving equity markets without a reliable source of support after a volatile first quarter. Net purchases of U.S. equities by individuals reached a monthly record in February, but have since slowed down, leaving markets vulnerable.
