Exploring Weave Communications, Inc. (WEAV) Investor Profile: Who’s Buying and Why?

You've watched Weave Communications, Inc. (WEAV) stock price drop from roughly $13.07 to around $6.01 per share over the last year, and you're wondering why major institutions are still holding or even adding to their positions. Honestly, the answer sits at the intersection of a depressed valuation and accelerating financial performance, which is a defintely compelling mix for smart money. While the company's total institutional ownership hovers at a massive 75%, it's the recent activity that matters: firms like BlackRock, Inc. and Wasatch Advisors LP were increasing their stakes in their latest filings, even as the stock was volatile. Why? Because the vertical SaaS platform for healthcare practices just delivered a Q3 2025 total revenue of $61.3 million, a 17.1% jump year-over-year, alongside a non-GAAP net income of $2.0 million. That's a clear signal. So, who are the top buyers like FMR LLC, which holds over 12% of the shares, and what is their long-term thesis on a business generating $5.0 million in free cash flow in a single quarter? Let's map out exactly who is buying and what they see that the broader market is missing.

Who Invests in Weave Communications, Inc. (WEAV) and Why?

The investor profile for Weave Communications, Inc. (WEAV) is dominated by professional money managers, which means the stock is highly sensitive to institutional trading. You should know that institutional investors-think mutual funds, pension funds, and major asset managers-hold the vast majority of shares, with their actions driving most of the price movement.

As of late 2025, institutions own approximately 75% of the company's outstanding stock, a clear sign that the market views WEAV as a specialized growth play. This high concentration means individual investors (retail) have a much smaller direct influence on the stock's daily volatility, though their collective sentiment still matters. It's a classic high-conviction institutional holding.

Key Investor Types and Their Stake

The ownership structure is a three-part story: institutional, insider, and a very small retail float. The sheer size of the institutional stake, which includes firms like FMR LLC, Vanguard Group Inc, and BlackRock, Inc., tells you this is a stock being vetted and held by the largest players in finance. Honestly, that level of institutional backing lends the stock a certain gravitas, even with recent price volatility.

The breakdown of ownership highlights who has the most skin in the game:

• Institutional Investors: Hold around 75% of the stock, equating to over 74.8 million shares held by 357 institutions.
• Insiders: Including pre-IPO venture capital firms and company executives, they hold a significant portion, around 54.27%.
• Retail Investors: Their direct ownership is very low, often cited as less than 1% of the float, meaning your average day trader isn't the primary driver here.

While some analysts suggest hedge funds don't have a 'meaningful' investment, specific funds like Renaissance Technologies and Crosslink Capital, Inc. (also a large insider/VC holder) do appear in the filings, indicating that sophisticated, quantitative strategies are at play, even if the overall hedge fund percentage is small compared to traditional institutions.

Investment Motivations: The Growth Thesis

Investors are buying Weave Communications, Inc. for a few clear reasons, all centered on its position as a vertical Software as a Service (SaaS) platform for small and medium-sized healthcare businesses. It's a bet on the digital transformation of the dental, optometry, and specialty medical markets.

The Q3 2025 financial results provided strong validation for this growth thesis. The company reported revenue of $61.3 million, a solid 17.1% year-over-year increase, and raised its full-year 2025 revenue guidance to between $238.0 million and $239.0 million. This consistent revenue growth is the primary magnet for growth-focused institutional funds.

Key motivators include:

• Payments Revenue Acceleration: Payments revenue is growing at more than double the total company growth rate, a sign of successful cross-selling and platform lock-in.
• AI-Powered Platform: The integration of AI capabilities, accelerated by the TrueLark acquisition, promises to enhance automation and create new upsell opportunities in patient engagement.
• Improving Profitability: Management raised its full-year non-GAAP operating income guidance to a range of $3.3 million to $4.3 million, showing a clear path toward sustainable profitability, plus the company generated $5.0 million in free cash flow in Q3 2025.
• Untapped Market: The specialty medical vertical is still less than 1% penetrated, representing a massive long-term growth runway.

You're seeing a shift from a pure growth-at-any-cost model to one focused on efficient growth, which is exactly what professional investors want to see in a maturing SaaS company. For a deeper dive into the numbers, you should check out Breaking Down Weave Communications, Inc. (WEAV) Financial Health: Key Insights for Investors.

Investment Strategies in Play

Given the company's profile, the dominant strategy among institutional holders is Growth Investing. They are buying based on the expectation that the company's revenue and market share gains in the healthcare SMB space will continue to compound, justifying a higher valuation multiple today. This isn't a value stock; it's a growth stock that's starting to show a path to consistent, positive cash flow.

Other strategies include:

• Long-Term Holding: Many of the largest holders, like Vanguard Group Inc, which run index-tracking or passively managed funds, are essentially long-term holders. They are committed to the stock as part of a broader small-cap or technology index, weathering short-term volatility.
• The Turnaround/Efficiency Play: Some investors are betting on the management team's ability to continue improving gross margin, which hit a record non-GAAP 73% in Q3 2025. Here's the quick math: higher gross margin on accelerating revenue means operating leverage is kicking in, eventually leading to much larger profits.

The recent stock price decline, despite strong Q3 2025 results, suggests that some investors are focused on the persistent GAAP net loss of $8.7 million and the softening net revenue retention rate of 94%. This creates a classic divergence: growth investors focus on the accelerating revenue and payments, while cautious investors see the continued GAAP losses and retention headwinds, leading to a tug-of-war in the stock price. Your decision hinges on which narrative you defintely believe will win out in 2026.

Institutional Ownership and Major Shareholders of Weave Communications, Inc. (WEAV)

If you are looking at Weave Communications, Inc. (WEAV), the direct takeaway is that this is a stock heavily controlled by professional money. Institutional investors-the mutual funds, pension funds, and asset managers-hold an overwhelming majority of the company, which means their collective decisions drive the stock's near-term volatility and long-term strategic direction.

As of late 2025, institutional shareholders own approximately 83.96% of Weave Communications, Inc.'s outstanding stock. This is a significant concentration of ownership, telling you that the company's board and management defintely have to keep a close eye on the preferences of these large holders. For context, the general public, including retail investors, holds a much smaller stake, making it hard for them to sway company policy if it conflicts with the institutional view.

Top Institutional Investors: Who's Buying the WEAV Story?

The institutional landscape for Weave Communications, Inc. is dominated by a few major players, many of whom are passive index funds but also include active managers and venture capital-linked entities. Here's the quick math: the top nine shareholders alone hold about 51% of the business. Knowing who these players are gives you a clear picture of the company's shareholder base and potential long-term stability.

The largest institutional holders as of the 2025 fiscal year filings are a mix of massive asset managers and specialized growth funds. BlackRock, Inc. is on this list, which is common for any publicly traded company, but the presence of firms like CrossLink Capital, Inc. and FMR LLC shows where the early-stage conviction still lies. The total value of these holdings is based on a recent share price of roughly $6.01 per share in November 2025.

Recent Shifts: Institutional Buying vs. Insider Selling

The recent trading activity in Weave Communications, Inc. presents a fascinating, and somewhat conflicting, signal. On one hand, you see significant institutional accumulation, but on the other, you see a clear pattern of insider selling. This divergence is something you need to watch closely.

In the most recent quarter, several institutional players substantially increased their positions. For example, Bank of New York Mellon Corp boosted its stake by a massive 474.5% in the first quarter of 2025, accumulating an additional 471,446 shares. Also, Connor Clark & Lunn Investment Management Ltd. lifted its position by 36.7% to 488,956 shares. This shows confidence from some large funds, possibly viewing the stock as undervalued after its significant price drop-a one-year loss of 55% for stockholders was noted recently.

But here's the rub: insiders have been selling. Corporate insiders sold a total of 158,172 shares of company stock valued at approximately $1.17 million in the last 90 days. This includes a director selling 50,993 shares in November 2025. When the people closest to the business are reducing their holdings while institutions are buying, it's a yellow flag that warrants deeper due diligence on the company's Mission Statement, Vision, & Core Values of Weave Communications, Inc. (WEAV).

• Large funds are accumulating shares, signaling a belief in a turnaround or long-term value.
• Insiders are consistently selling, suggesting a lack of conviction at current price levels.

The Impact of Institutional Investors on Strategy

Given the high institutional ownership, these large investors play a critical role, acting as the firm's most powerful shareholder group. Their influence is felt in two key areas: stock price and corporate strategy.

First, on the stock price, the sheer volume of their shares means the stock is highly sensitive to their collective trading actions. If a few major institutions decide to sell simultaneously, you could see the share price drop fast. For instance, institutional investors saw their holdings value drop by 14% in one recent week due to market movements.

Second, on strategy, the board will likely have to pay attention to their preferences. This is especially true with the presence of private equity firms, which hold a significant stake (around 9.1%) and are known for actively shaping corporate strategy with a focus on value creation. In late 2025, analysts noted that despite beating Q3 2025 revenue estimates of $61.34 million, concerns over customer retention metrics and staffing challenges in healthcare practices were key reasons for lowering price targets. These are the exact operational and strategic issues that institutional investors will pressure management to fix, especially as the company continues to face operating losses and negative earnings.

Key Investors and Their Impact on Weave Communications, Inc. (WEAV)

You need to know who is driving the bus at Weave Communications, Inc. (WEAV), and for this company, the ownership structure is a split between massive institutional funds and a powerful core of venture capital (VC) money from its pre-IPO days. The key takeaway is that institutional investors own a commanding 75% of the stock, but a few original insiders and VC firms still hold enough to exert significant influence on strategic decisions.

This dual structure means the stock price is defintely sensitive to the trading actions of the large institutions, but the company's long-term direction is still heavily shaped by the original backers. If you want a deeper dive into the company's fundamentals, check out Breaking Down Weave Communications, Inc. (WEAV) Financial Health: Key Insights for Investors.

The Institutional Heavyweights: Who's Buying and Why

The institutional side of the investor base is dominated by some of the largest asset managers in the world, which is a sign of credibility. These funds are primarily passive investors, meaning they buy the stock because it's included in their index-tracking or large-cap growth funds, but their sheer size gives them a powerful voice. The top institutional holders as of the 2025 fiscal year filings include:

• FMR LLC (Fidelity): The largest institutional holder, with about 9.63 million shares, representing 12% of shares outstanding.
• The Vanguard Group, Inc.: Holding approximately 5.47 million shares, or 7.01% of the company.
• BlackRock, Inc.: A major player with a stake of about 4.63 million shares, equating to 5.93% ownership.

Here's the quick math: when firms like BlackRock, Inc. and The Vanguard Group, Inc. adjust their positions, the market feels it immediately. Their collective buying or selling can easily move the stock price, especially given that the top nine shareholders alone account for over 51% of the business.

The Enduring Influence of Insider and VC Funds

What makes Weave Communications, Inc.'s ownership unique is the high concentration of shares still held by insiders and the original venture capital (VC) funds that took the company public. These are not passive investors; they have board seats and a direct line to management, meaning they impact company decisions-everything from capital allocation to M&A strategy. This group represents a significant block of control, often referred to as 'smart money' due to their early investment.

The top stakeholders in this category, based on their beneficial ownership, are highly concentrated:

The fact that an individual like Director Tyler Newton holds over 22% of the company means he has a disproportionate say in shareholder votes and corporate governance. This high level of insider ownership is a double-edged sword: it aligns management's interests with long-term performance, but it can also limit the influence of newer, public shareholders.

Recent Investor Moves and What They Mean

The most notable recent activity in 2025 has been a clear trend of insider selling, which is a signal you can't ignore. In November 2025, Director Tyler Newton sold 50,993 shares at an average price of $6.68, reducing his direct ownership by 50%. Likewise, in September 2025, Chief Financial Officer Paul Jason Christiansen sold 3.9K shares for $7.5 each. This insider selling, totaling over $340,633 in November 2025 alone, suggests that key executives and directors are taking profits or reducing exposure, even as the company reports solid revenue growth.

On the institutional side, the story is more mixed. While some institutions are trimming their positions, others are building. For example, the Teacher Retirement System of Texas boosted its stake by 31.7% in the first quarter of 2025, acquiring an additional 12,566 shares. This tells me that while the original backers and executives are selling, some large, long-term-focused institutional funds are still accumulating shares, betting on the company's future growth vectors like its expansion into specialty medical verticals and AI-powered innovations.

Market Impact and Investor Sentiment

You are seeing a classic split in the market for Weave Communications, Inc. (WEAV): Wall Street analysts are bullish on the company's financial turnaround, but institutional investors and company insiders are showing caution with their trading actions.

The overall investor sentiment is best described as cautiously positive, driven by strong Q3 2025 financial results, but tempered by significant insider selling and a recent stock price decline. Institutions hold the majority of the stock, so their movements matter a lot. You can learn more about the company's background here: Weave Communications, Inc. (WEAV): History, Ownership, Mission, How It Works & Makes Money.

The stock price, as of November 21, 2025, was around $5.97, a sharp contrast to its 52-week high of $17.62. That's a massive drop. The institutional ownership is high, at approximately 75% of the shares outstanding, meaning the stock price is highly sensitive to their collective decisions.

The Institutional-Insider Disconnect

The major shareholders are mostly institutions, including FMR LLC, CrossLink Capital, Inc., and The Vanguard Group, Inc., holding 12%, 9.1%, and 6.8% of the shares outstanding, respectively. These groups are the smart money, and while they hold the bulk of the stock, they recently watched their holdings value drop by 14% in a single week, adding to a one-year loss of 55% for stockholders. That kind of loss forces a hard look at the investment thesis.

Here's the quick math on the insider activity: over the last year, insiders have executed high-impact open-market sales totaling $15.9 million. When the people who know the business best are selling, it sends a clear negative signal, even if the total volume of shares sold is smaller than institutional buys. It defintely raises an eyebrow.

• FMR LLC: Holds 12% of shares.
• Vanguard Group Inc.: Holds 6.8% of shares.
• Insider Sales (LTM): $15.9 million.

Market Response to Q3 2025 Performance

The stock market's immediate reaction to the Q3 2025 earnings report on October 30, 2025, was positive. The stock saw a 3.04% increase in aftermarket trading because the company beat expectations. This move was a direct nod to the company's improving operational efficiency and growth.

Weave Communications, Inc. reported Q3 2025 total revenue of $61.3 million, which was a strong 17.1% year-over-year increase. Plus, they achieved a record non-GAAP gross margin of 73.0% and generated $5.0 million in free cash flow, which is a key indicator of a healthy Software as a Service (SaaS) business model.

But, the market is also focused on retention. The dollar-based Net Revenue Retention (NRR) dropped from 98% to 94% year-over-year. A declining NRR suggests that customer churn is rising, especially as the company expands into new specialty medical verticals. That's a risk you can't ignore.

Analyst Consensus and Future Outlook

Analysts are generally optimistic, giving Weave Communications, Inc. a consensus Buy rating as of November 2025. For the full fiscal year 2025, the company raised its revenue guidance to a range of $238 million to $239 million. This revision confirms the positive momentum from the Q3 beat.

The average analyst price target is set at $11.50 to $12.20, suggesting a significant upside from the current share price. This optimism is grounded in the company's focus on AI-powered vertical SaaS solutions for small and medium-sized healthcare practices and the continued growth in its core payments business, which saw a 40% increase.

Here is a snapshot of the analyst-driven financial outlook based on the most recent data:

The key takeaway is that the fundamentals are improving, but the stock is still sensitive to institutional profit-taking and the perception of risk from insider selling. Your next step should be to monitor the next 13F filings for major institutional changes, especially from the largest holders like FMR LLC, to see if their conviction matches the analysts' Strong Buy rating.