Innovative Solutions and Support, Inc. (NASDAQ:ISSC) most popular amongst individual investors who own 42%, insiders hold 22%
Key Insights
Significant control over Innovative Solutions and Support by individual investors implies that the general public has more power to influence management and governance-related decisions
A total of 10 investors have a majority stake in the company with 51% ownership
Every investor in Innovative Solutions and Support, Inc. (NASDAQ:ISSC) should be aware of the most powerful shareholder groups. With 42% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual insiders, on the other hand, account for 22% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Innovative Solutions and Support, beginning with the chart below.
Check out our latest analysis for Innovative Solutions and Support
What Does The Institutional Ownership Tell Us About Innovative Solutions and Support?
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 Innovative Solutions and Support 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 Innovative Solutions and Support's earnings history below. Of course, the future is what really matters.
It looks like hedge funds own 5.0% of Innovative Solutions and Support shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Christopher Harborne is currently the largest shareholder, with 15% of shares outstanding. Estate Of Geoffrey S. M. Hedrick is the second largest shareholder owning 9.6% of common stock, and Central Square Management, LLC holds about 5.0% of the company stock. In addition, we found that Shahram Askarpour, the CEO has 1.2% of the shares allocated to their name.
We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Innovative Solutions and Support
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
It seems insiders own a significant proportion of Innovative Solutions and Support, Inc.. Insiders have a US$30m stake in this US$135m 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
With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Innovative Solutions and Support. 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.
Private Company Ownership
It seems that Private Companies own 9.6%, of the Innovative Solutions and Support stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Innovative Solutions and Support is showing 1 warning sign in our investment analysis , you should know about...
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
