What Kind Of Shareholder Owns Most Ariadne Australia Limited (ASX:ARA) Stock?

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A look at the shareholders of Ariadne Australia Limited (ASX:ARA) can tell us which group is most powerful. 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$124m, Ariadne Australia 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 institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about ARA.

See our latest analysis for Ariadne Australia

ASX:ARA Ownership Summary, July 12th 2019
ASX:ARA Ownership Summary, July 12th 2019

What Does The Institutional Ownership Tell Us About Ariadne Australia?

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.

Institutions own less than 5% of Ariadne Australia. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

ASX:ARA Income Statement, July 12th 2019
ASX:ARA Income Statement, July 12th 2019

We note that hedge funds don't have a meaningful investment in Ariadne Australia. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ariadne Australia

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.