A look at the shareholders of Crossword Cybersecurity Plc (LON:CCS) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.'
Crossword Cybersecurity is not a large company by global standards. It has a market capitalization of UK£24m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about CCS.
View our latest analysis for Crossword Cybersecurity
What Does The Institutional Ownership Tell Us About Crossword Cybersecurity?
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.
We can see that Crossword Cybersecurity does have institutional investors; and they hold 12% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Crossword Cybersecurity's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Crossword Cybersecurity. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Crossword Cybersecurity
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Crossword Cybersecurity Plc. It has a market capitalization of just UK£24m, and insiders have UK£6.9m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.