U.S. Markets closed
  • S&P Futures

    4,208.25
    -38.25 (-0.90%)
     
  • Dow Futures

    33,952.00
    -336.00 (-0.98%)
     
  • Nasdaq Futures

    13,867.75
    -162.50 (-1.16%)
     
  • Russell 2000 Futures

    2,296.60
    -19.10 (-0.82%)
     
  • Crude Oil

    72.00
    -0.12 (-0.17%)
     
  • Gold

    1,838.60
    -17.80 (-0.96%)
     
  • Silver

    27.48
    -0.21 (-0.77%)
     
  • EUR/USD

    1.2022
    -0.0111 (-0.9137%)
     
  • 10-Yr Bond

    1.5690
    +0.0700 (+4.67%)
     
  • Vix

    18.24
    +1.22 (+7.17%)
     
  • GBP/USD

    1.4009
    -0.0074 (-0.5239%)
     
  • USD/JPY

    110.4730
    +0.4390 (+0.3990%)
     
  • BTC-USD

    38,903.93
    -1,122.45 (-2.80%)
     
  • CMC Crypto 200

    967.13
    -25.35 (-2.55%)
     
  • FTSE 100

    7,184.95
    +12.47 (+0.17%)
     
  • Nikkei 225

    29,291.01
    -150.29 (-0.51%)
     

Is QANTM Intellectual Property Limited's (ASX:QIP) Shareholder Ownership Skewed Towards Insiders?

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in QANTM Intellectual Property Limited (ASX:QIP) 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.

With a market capitalization of AU$151m, QANTM Intellectual Property is a small cap stock, so it might not be well known by 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 QANTM Intellectual Property.

See our latest analysis for QANTM Intellectual Property

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About QANTM Intellectual Property?

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.

QANTM Intellectual Property 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see QANTM Intellectual Property's historic earnings and revenue below, but keep in mind there's always more to the story.

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

We note that hedge funds don't have a meaningful investment in QANTM Intellectual Property. The company's largest shareholder is Perpetual Investments Management Limited, with ownership of 7.3%. With 5.3% and 4.9% of the shares outstanding respectively, Ice Investors Pty Ltd and Investors Mutual Limited are the second and third largest shareholders.

After doing some more digging, we found that the top 22 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 QANTM Intellectual Property

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.

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.

It seems insiders own a significant proportion of QANTM Intellectual Property Limited. It has a market capitalization of just AU$151m, and insiders have AU$19m worth of shares in their own names. 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 41% stake in QANTM Intellectual Property. 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

Our data indicates that Private Companies hold 20%, of the company's shares. 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.

Public Company Ownership

It appears to us that public companies own 3.0% of QANTM Intellectual Property. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand QANTM Intellectual Property better, we need to consider many other factors. For example, we've discovered 1 warning sign for QANTM Intellectual Property that you should be aware of before investing here.

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.

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.