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If you want to know who really controls Spectra Systems Corporation (LON:SPSC), 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 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.’
Spectra Systems is a smaller company with a market capitalization of UK£41m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about SPSC.
Check out our latest analysis for Spectra Systems
What Does The Institutional Ownership Tell Us About Spectra Systems?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Spectra Systems already has institutions on the share registry. Indeed, they own 21% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Spectra Systems’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Spectra Systems. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Spectra Systems
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.
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 information suggests that insiders maintain a significant holding in Spectra Systems Corporation. Insiders own UK£9m worth of shares in the UK£41m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.