If you want to know who really controls ikeGPS Group Limited (

NZSE:IKE

),baby wakes up at slightest noise 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. 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.

ikeGPS Group is not a large company by global standards. It has a market capitalization of NZ$61m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about IKE.

View our latest analysis for ikeGPS Group

NZSE:IKE Ownership Summary January 2nd 19

What Does The Institutional Ownership Tell Us About ikeGPS Group?

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.

ikeGPS Group already has institutions on the share registry. Indeed, they own 12% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at ikeGPS Group’s earnings history, below. Of course, the future is what really matters.

NZSE:IKE Income Statement Export January 2nd 19

ikeGPS Group 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 ikeGPS Group

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 ikeGPS Group Limited. It has a market capitalization of just NZ$61m, and insiders have NZ$27m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can

click here to see if those insiders have been buying or selling.

Story continues

General Public Ownership

The general public holds a 42% stake in IKE. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a

history of revenue growth

. You can too, by accessing this free chart of

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

[email protected]

.

View comments

• ·EXCLUSIVE: Frédéric Arnault Gears Up for CEO Role at Tag Heuer
• ·Mitsubishi Motors beats view with 38 percent profit jump on Southeast Asia sales
• ·BRIEF-Hua Medicine Initiates First Combination Study Of Dorzagliatin With A Dpp-4 Inhibitor In United States
• ·Loss-Making Workhorse Group Inc. (NASDAQ:WKHS) Expected To Breakeven
• ·Walmart Stock Rises 3%
• ·Is Agrimin Limited (ASX:AMN) Excessively Paying Its CEO?
• ·Jonas Brothers Drop Fabulous 'Sucker' Music Video Featuring Priyanka Chopra, Sophie Turner & Danielle Jonas
• ·What Does CK Infrastructure Holdings Limited’s (HKG:1038) P/E Ratio Tell You?
• ·China's Xi Visits Wuhan, Says Coronavirus Outbreak 'Basically Curbed'
• ·What ROTC Programs Are and How They Work
• ·The Audi S7 Sounds Surprisingly Good With an Upgraded Exhaust
• ·Tommy Bahama marks 30th anniversary, with idea that began on Bonita Beach
• ·Rand Capital Corp. to Host Earnings Call
• ·Is Primoris Services Corporation (NASDAQ:PRIM) Expensive For A Reason? A Look At The Intrinsic Value
• ·Jaden Smith Explains Why He Can’t Hang Out With Kanye West & Drake Anymore
• ·Ex-Kirkland & Ellis Lawyers, Now at White House, Receive Waivers to Work With Former Colleagues