Advertisement
Canada markets open in 4 hours 38 minutes
  • S&P/TSX

    22,375.83
    +116.63 (+0.52%)
     
  • S&P 500

    5,214.08
    +26.41 (+0.51%)
     
  • DOW

    39,387.76
    +331.36 (+0.85%)
     
  • CAD/USD

    0.7309
    -0.0002 (-0.03%)
     
  • CRUDE OIL

    79.50
    +0.24 (+0.30%)
     
  • Bitcoin CAD

    86,115.16
    +2,151.74 (+2.56%)
     
  • CMC Crypto 200

    1,304.49
    -53.52 (-3.94%)
     
  • GOLD FUTURES

    2,374.50
    +34.20 (+1.46%)
     
  • RUSSELL 2000

    2,073.63
    +18.49 (+0.90%)
     
  • 10-Yr Bond

    4.4490
    -0.0430 (-0.96%)
     
  • NASDAQ futures

    18,271.75
    +57.25 (+0.31%)
     
  • VOLATILITY

    12.77
    +0.08 (+0.63%)
     
  • FTSE

    8,430.52
    +49.17 (+0.59%)
     
  • NIKKEI 225

    38,229.11
    +155.13 (+0.41%)
     
  • CAD/EUR

    0.6776
    -0.0002 (-0.03%)
     

Do Institutions Own SponsorsOne Inc (FRA:5SO) Shares?

Every investor in SponsorsOne Inc (FRA:5SO) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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.’

SponsorsOne is a smaller company with a market capitalization of €4.1m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not really that prevalent on the share registry. Let’s delve deeper into each type of owner, to discover more about 5SO.

View our latest analysis for SponsorsOne

DB:5SO Ownership Summary November 28th 18
DB:5SO Ownership Summary November 28th 18

What Does The Lack Of Institutional Ownership Tell Us About SponsorsOne?

We don’t tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it’s not particularly common.

ADVERTISEMENT

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of SponsorsOne, for yourself, below.

DB:5SO Income Statement Export November 28th 18
DB:5SO Income Statement Export November 28th 18

SponsorsOne is not owned by hedge funds. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of SponsorsOne

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 SponsorsOne Inc. Insiders have a €646k stake in this €4.1m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public — mostly retail investors — own 84% of SponsorsOne . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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 editorial-team@simplywallst.com.