In This Article:
Key Insights
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Insiders appear to have a vested interest in Ultralife's growth, as seen by their sizeable ownership
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The top 4 shareholders own 51% of the company
If you want to know who really controls Ultralife Corporation (NASDAQ:ULBI), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
A quick look at our data suggests that insiders have been buying shares in the company recently. This could signal that stock prices could go up and insiders are here for it.
Let's take a closer look to see what the different types of shareholders can tell us about Ultralife.
Check out our latest analysis for Ultralife
What Does The Institutional Ownership Tell Us About Ultralife?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Ultralife does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Ultralife's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Ultralife. Bradford Whitmore is currently the largest shareholder, with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.6% and 5.7%, of the shares outstanding, respectively.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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 some analyst coverage of the stock, but it could still become more well known, with time.