If you want to know who really controls Spectra Systems Corporation (LON:SPSY), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, institutions make up 35% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's take a closer look to see what the different types of shareholders can tell us about Spectra Systems.

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 a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Spectra Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Spectra Systems is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Nicholas Slater with 10% of shares outstanding. Close Asset Management Limited is the second largest shareholder owning 10% of common stock, and Mercantile Investment Company Limited holds about 9.2% of the company stock. Furthermore, CEO Nabil Lawandy is the owner of 5.0% of the company's shares.

We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 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.