The big shareholder groups in A2Z Smart Technologies Corp. (CVE:AZ) have power over the company. 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.
A2Z Smart Technologies is a smaller company with a market capitalization of CA$224m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have not yet purchased much of the company. Let's delve deeper into each type of owner, to discover more about A2Z Smart Technologies.
See our latest analysis for A2Z Smart Technologies
What Does The Lack Of Institutional Ownership Tell Us About A2Z Smart Technologies?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of A2Z Smart Technologies, for yourself, below.
We note that hedge funds don't have a meaningful investment in A2Z Smart Technologies. The company's CEO Bentsur Joseph is the largest shareholder with 45% of shares outstanding. For context, the second largest shareholder holds about 0.4% of the shares outstanding, followed by an ownership of 0.1% by the third-largest shareholder.
Our studies suggest that the top 5 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.