U.S. markets close in 4 hours
  • S&P 500

    4,086.54
    -65.56 (-1.58%)
     
  • Dow 30

    33,816.19
    -452.97 (-1.32%)
     
  • Nasdaq

    13,082.58
    -306.85 (-2.29%)
     
  • Russell 2000

    2,177.99
    -29.00 (-1.31%)
     
  • Crude Oil

    66.32
    +1.04 (+1.59%)
     
  • Gold

    1,823.30
    -12.80 (-0.70%)
     
  • Silver

    27.36
    -0.31 (-1.11%)
     
  • EUR/USD

    1.2076
    -0.0076 (-0.63%)
     
  • 10-Yr Bond

    1.6880
    +0.0640 (+3.94%)
     
  • GBP/USD

    1.4081
    -0.0063 (-0.44%)
     
  • USD/JPY

    109.5280
    +0.9080 (+0.84%)
     
  • BTC-USD

    55,544.70
    -562.66 (-1.00%)
     
  • CMC Crypto 200

    1,501.79
    -62.04 (-3.97%)
     
  • FTSE 100

    7,004.63
    +56.64 (+0.82%)
     
  • Nikkei 225

    28,147.51
    -461.08 (-1.61%)
     

What Is The Ownership Structure Like For GSI Technology, Inc. (NASDAQ:GSIT)?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in GSI Technology, Inc. (NASDAQ:GSIT) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of US$159m, GSI Technology is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about GSI Technology.

View our latest analysis for GSI Technology

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About GSI Technology?

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.

GSI Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 GSI Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

GSI Technology is not owned by hedge funds. With a 11% stake, CEO Lee-Lean Shu is the largest shareholder. With 6.2% and 5.6% of the shares outstanding respectively, Jing-Rong Tang and Roumell Asset Management, LLC are the second and third largest shareholders.

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.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of GSI Technology

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.

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 GSI Technology, Inc.. Insiders have a US$51m stake in this US$159m 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 holds a 33% stake in GSI Technology. 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:

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. To that end, you should learn about the 2 warning signs we've spotted with GSI Technology (including 1 which doesn't sit too well with us) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.