Advertisement
Canada markets open in 20 minutes
  • S&P/TSX

    22,011.72
    +139.76 (+0.64%)
     
  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     
  • DOW

    38,503.69
    +263.71 (+0.69%)
     
  • CAD/USD

    0.7288
    -0.0033 (-0.45%)
     
  • CRUDE OIL

    83.24
    -0.12 (-0.14%)
     
  • Bitcoin CAD

    90,738.93
    +18.80 (+0.02%)
     
  • CMC Crypto 200

    1,435.19
    +11.09 (+0.78%)
     
  • GOLD FUTURES

    2,335.90
    -6.20 (-0.26%)
     
  • RUSSELL 2000

    2,002.64
    +35.17 (+1.79%)
     
  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     
  • NASDAQ futures

    17,692.25
    +85.50 (+0.49%)
     
  • VOLATILITY

    15.83
    +0.14 (+0.89%)
     
  • FTSE

    8,075.23
    +30.42 (+0.38%)
     
  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     
  • CAD/EUR

    0.6816
    -0.0020 (-0.29%)
     

Do Institutions Own Auris Medical Holding Ltd. (NASDAQ:EARS) Shares?

A look at the shareholders of Auris Medical Holding Ltd. (NASDAQ:EARS) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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 US$5.4m, Auris Medical Holding is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about EARS.

Check out our latest analysis for Auris Medical Holding

NasdaqCM:EARS Ownership Summary, November 11th 2019
NasdaqCM:EARS Ownership Summary, November 11th 2019

What Does The Institutional Ownership Tell Us About Auris Medical Holding?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

ADVERTISEMENT

We can see that Auris Medical Holding does have institutional investors; and they hold 8.3% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Auris Medical Holding, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqCM:EARS Income Statement, November 11th 2019
NasdaqCM:EARS Income Statement, November 11th 2019

Our data indicates that hedge funds own 6.7% of Auris Medical Holding. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Auris Medical Holding

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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Auris Medical Holding Ltd.. Insiders have a US$638k stake in this US$5.4m business. 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 -- mostly retail investors -- own 73% of Auris Medical Holding. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

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.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.