Could ILPRA S.p.A.'s (BIT:ILP) Investor Composition Influence The Stock Price?

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If you want to know who really controls ILPRA S.p.A. (BIT:ILP), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

ILPRA is not a large company by global standards. It has a market capitalization of €25m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. Let's delve deeper into each type of owner, to discover more about ILP.

See our latest analysis for ILPRA

BIT:ILP Ownership Summary, September 20th 2019
BIT:ILP Ownership Summary, September 20th 2019

What Does The Institutional Ownership Tell Us About ILPRA?

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 ILPRA. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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.

BIT:ILP Income Statement, September 20th 2019
BIT:ILP Income Statement, September 20th 2019

Hedge funds don't have many shares in ILPRA. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of ILPRA

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

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 ILPRA S.p.A.. This means they can collectively make decisions for the company. So they have a €20m stake in this €25m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.