If you want to know who really controls Safe Bag SpA (BIT:SB), 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.’
Safe Bag is not a large company by global standards. It has a market capitalization of €63.6m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are not really that prevalent on the share registry. Let’s delve deeper into each type of owner, to discover more about SB.
See our latest analysis for Safe Bag
What Does The Lack Of Institutional Ownership Tell Us About Safe Bag?
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 are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. It is also possible that fund managers don’t own the stock because they aren’t convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Safe Bag, for yourself, below.
We note that hedge funds don’t have a meaningful investment in Safe Bag. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Safe Bag
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. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own the majority of Safe Bag SpA. This means they can collectively make decisions for the company. So they have a €40.6m stake in this €63.6m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.