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A look at the shareholders of PepinNini Lithium Limited (ASX:PNN) can tell us which group is most powerful. 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.'
PepinNini Lithium is not a large company by global standards. It has a market capitalization of AU$3.7m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased shares. We can zoom in on the different ownership groups, to learn more about PNN.
Check out our latest analysis for PepinNini Lithium
What Does The Lack Of Institutional Ownership Tell Us About PepinNini Lithium?
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 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. Alternatively, there might be something about the company that has kept institutional investors away. PepinNini Lithium might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
PepinNini Lithium is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of PepinNini Lithium
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in PepinNini Lithium Limited. Insiders have a AU$572k stake in this AU$3.7m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.