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The big shareholder groups in EVS Broadcast Equipment S.A. (EBR:EVS) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
EVS Broadcast Equipment is not a large company by global standards. It has a market capitalization of €318m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about EVS.
View our latest analysis for EVS Broadcast Equipment
What Does The Institutional Ownership Tell Us About EVS Broadcast Equipment?
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 EVS Broadcast Equipment does have institutional investors; and they hold 27% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 EVS Broadcast Equipment's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in EVS Broadcast Equipment. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of EVS Broadcast Equipment
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
We can see that insiders own shares in EVS Broadcast Equipment S.A.. In their own names, insiders own €18m worth of stock in the €318m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.