If you want to know who really controls Azure Healthcare Limited (ASX:AZV), then you’ll have to look at the makeup of its share registry.
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’
With a market capitalization of AU$15m, Azure Healthcare is a small cap stock, so it might not be well known by many institutional investors.
In the chart below below, we can see that
institutions are noticeable on the share registry.
Let’s take a closer look to see what the different types of shareholder can tell us about AZV.
What Does The Institutional Ownership Tell Us About Azure Healthcare?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Azure Healthcare does have institutional investors; and they hold 24% of the stock.
This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does.
It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Azure Healthcare, (below). Of course, keep in mind that there are other factors to consider, too.
Azure Healthcare is not owned by hedge funds.
As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Azure Healthcare
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least.
Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Azure Healthcare Limited.
Insiders own AU$6.6m worth of shares in the AU$15m company.
It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public holds a 29% stake in AZV.
While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at [email protected]om.
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