Advance ZincTek Limited (ASX:ANO) insiders seem bullish, own 61% and have been buying more recently
Simply Wall St
4 min read
A look at the shareholders of Advance ZincTek Limited (ASX:ANO) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 61% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
It's interesting to note that insiders have been buying shares recently. This could signal that stock prices could go up and insiders are here for it.
Let's take a closer look to see what the different types of shareholders can tell us about Advance ZincTek.
What Does The Lack Of Institutional Ownership Tell Us About Advance ZincTek?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Advance ZincTek's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
ASX:ANO Earnings and Revenue Growth August 21st 2022
We note that hedge funds don't have a meaningful investment in Advance ZincTek. Looking at our data, we can see that the largest shareholder is Lev Mizikovsky with 49% of shares outstanding. With 8.0% and 3.0% of the shares outstanding respectively, Kearney Ethical Investments Pty Ltd and Bruce Cameron are the second and third largest shareholders. In addition, we found that Geoffrey Acton, the CEO has 0.6% of the shares allocated to their name.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Advance ZincTek
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own the majority of Advance ZincTek Limited. This means they can collectively make decisions for the company. That means they own AU$97m worth of shares in the AU$159m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Advance ZincTek. 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
It seems that Private Companies own 9.4%, of the Advance ZincTek stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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