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What Type Of Shareholders Make Up Aspen Group, Inc.'s (NASDAQ:ASPU) Share Registry?

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·5 min read
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If you want to know who really controls Aspen Group, Inc. (NASDAQ:ASPU), then you'll have to look at the makeup of its share registry. 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.

Aspen Group is not a large company by global standards. It has a market capitalization of US$190m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Aspen Group.

Check out our latest analysis for Aspen Group

NasdaqGM:ASPU Ownership Breakdown July 3rd 2020
NasdaqGM:ASPU Ownership Breakdown July 3rd 2020

What Does The Institutional Ownership Tell Us About Aspen Group?

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.

We can see that Aspen Group does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Aspen Group, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqGM:ASPU Earnings and Revenue Growth July 3rd 2020
NasdaqGM:ASPU Earnings and Revenue Growth July 3rd 2020

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Aspen Group. Next Century Growth Investors LLC is currently the largest shareholder, with 7.2% of shares outstanding. With 4.6% and 4.5% of the shares outstanding respectively, Leon Cooperman and Goudy Park Management, Llc are the second and third largest shareholders. Furthermore, CEO Michael Mathews is the owner of 2.8% of the company's shares.

A closer look at our ownership figures suggests that the top 22 shareholders have a combined ownership of 50% implying that no one share holder has a majority.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Aspen Group

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. 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 Aspen Group, Inc.. It has a market capitalization of just US$190m, and insiders have US$31m 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

With a 32% ownership, the general public have some degree of sway over ASPU. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 be aware of the 1 warning sign we've spotted with Aspen Group .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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@simplywallst.com.