Integral Diagnostics Limited's (ASX:IDX) market cap touched AU$695m last week, benefiting both retail investors who own 42% as well as institutions
In This Article:
Key Insights
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Integral Diagnostics' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 16 investors have a majority stake in the company with 50% ownership
A look at the shareholders of Integral Diagnostics Limited (ASX:IDX) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Retail investors gained the most after market cap touched AU$695m last week, while institutions who own 41% also benefitted.
In the chart below, we zoom in on the different ownership groups of Integral Diagnostics.
Check out our latest analysis for Integral Diagnostics
What Does The Institutional Ownership Tell Us About Integral Diagnostics?
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.
We can see that Integral Diagnostics does have institutional investors; and they hold a good portion of the company's 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. 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 Integral Diagnostics' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Integral Diagnostics. Yarra Funds Management Limited is currently the largest shareholder, with 8.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.9% and 5.0% of the stock.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Integral Diagnostics
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.