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How Much Of Inseego Corp. (NASDAQ:INSG) Do Institutions Own?

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NASDAQ:INSG) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.” data-reactid=”20″>The big shareholder groups in Inseego Corp. (NASDAQ:INSG) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Inseego isn’t enormous, but it’s not particularly small either. It has a market capitalization of US$1.1b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Inseego.

See our latest analysis for Inseego ” data-reactid=”22″>See our latest analysis for Inseego

ownership-breakdown

What Does The Institutional Ownership Tell Us About Inseego?

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.

We can see that Inseego does have institutional investors; and they hold a good portion of the company’s 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. 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 Inseego’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth

Hedge funds don’t have many shares in Inseego. The company’s largest shareholder is Golden Harbor Ltd., with ownership of 12%. Meanwhile, the second and third largest shareholders, hold 10% and 6.6%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no one share holder has a majority.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Inseego

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.

if those insiders have been buying. ” data-reactid=”60″>Our information suggests that Inseego Corp. insiders own under 1% of the company. However, it’s possible that insiders might have an indirect interest through a more complex structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$4.2m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 43% ownership, the general public have some degree of sway over INSG. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With an ownership of 10%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

We can see that Private Companies own 13%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

5 warning signs we’ve spotted with Inseego .” data-reactid=”68″>It’s always worth thinking about the different groups who own shares in a company. But to understand Inseego better, we need to consider many other factors. To that end, you should be aware of the 5 warning signs we’ve spotted with Inseego .

this free report showing analyst forecasts for its future.” data-reactid=”69″>If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”71″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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