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Can We See Significant Insider Ownership On The Arizona Silver Exploration Inc. (CVE:AZS) Share Register?

Every investor in Arizona Silver Exploration Inc. (CVE:AZS) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Arizona Silver Exploration is a smaller company with a market capitalization of CA$5.3m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about AZS.

Check out our latest analysis for Arizona Silver Exploration

TSXV:AZS Ownership Summary, August 1st 2019
TSXV:AZS Ownership Summary, August 1st 2019

What Does The Lack Of Institutional Ownership Tell Us About Arizona Silver Exploration?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at 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 Arizona Silver Exploration, for yourself, below.

TSXV:AZS Income Statement, August 1st 2019
TSXV:AZS Income Statement, August 1st 2019

Hedge funds don't have many shares in Arizona Silver Exploration. 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 Arizona Silver Exploration

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own a reasonable proportion of Arizona Silver Exploration Inc.. It has a market capitalization of just CA$5.3m, and insiders have CA$798k worth of shares in their own names. 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 85% of Arizona Silver Exploration . 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Arizona Silver Exploration better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

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.

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.