Advertisement
U.S. markets open in 9 minutes
  • S&P Futures

    5,308.50
    +0.25 (+0.00%)
     
  • Dow Futures

    40,178.00
    +34.00 (+0.08%)
     
  • Nasdaq Futures

    18,499.75
    -4.00 (-0.02%)
     
  • Russell 2000 Futures

    2,141.30
    +2.90 (+0.14%)
     
  • Crude Oil

    82.46
    +1.11 (+1.36%)
     
  • Gold

    2,231.50
    +18.80 (+0.85%)
     
  • Silver

    24.75
    -0.00 (-0.01%)
     
  • EUR/USD

    1.0811
    -0.0019 (-0.17%)
     
  • 10-Yr Bond

    4.2080
    +0.0120 (+0.29%)
     
  • Vix

    12.96
    +0.18 (+1.41%)
     
  • GBP/USD

    1.2635
    -0.0003 (-0.02%)
     
  • USD/JPY

    151.3380
    +0.0920 (+0.06%)
     
  • Bitcoin USD

    70,619.70
    -507.18 (-0.71%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,954.45
    +22.47 (+0.28%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Can We See Significant Insider Ownership On The Irving Resources Inc. (CNSX:IRV) Share Register?

The big shareholder groups in Irving Resources Inc. (CNSX:IRV) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.

Irving Resources is a smaller company with a market capitalization of CA$123m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about IRV.

View our latest analysis for Irving Resources

CNSX:IRV Ownership Summary, October 22nd 2019
CNSX:IRV Ownership Summary, October 22nd 2019

What Does The Institutional Ownership Tell Us About Irving Resources?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Irving Resources already has institutions on the share registry. Indeed, they own 5.4% of the company. 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. 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 Irving Resources's historic earnings and revenue, below, but keep in mind there's always more to the story.

CNSX:IRV Income Statement, October 22nd 2019
CNSX:IRV Income Statement, October 22nd 2019

Irving Resources is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Irving Resources

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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Irving Resources Inc.. Insiders own CA$29m worth of shares in the CA$123m company. 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 -- mostly retail investors -- own 71% of Irving Resources. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

Advertisement