If you want to know who really controls Indoor Skydive Australia Group Limited (ASX:IDZ), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.
With a market capitalization of AU$3.4m, Indoor Skydive Australia Group is a small cap stock, so it might not be well known by 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. Let's take a closer look to see what the different types of shareholder can tell us about IDZ.
See our latest analysis for Indoor Skydive Australia Group
What Does The Institutional Ownership Tell Us About Indoor Skydive Australia Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Indoor Skydive Australia Group already has institutions on the share registry. Indeed, they own 13% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Indoor Skydive Australia Group's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Indoor Skydive Australia Group. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Indoor Skydive Australia Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.