In This Article:
If you want to know who really controls Amplia Therapeutics Limited (ASX:ATX), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.
With a market capitalization of AU$4.3m, Amplia Therapeutics is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about ATX.
See our latest analysis for Amplia Therapeutics
What Does The Lack Of Institutional Ownership Tell Us About Amplia Therapeutics?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Amplia Therapeutics might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Amplia Therapeutics is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Amplia Therapeutics
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 most recent data indicates that insiders own a reasonable proportion of Amplia Therapeutics Limited. Insiders own AU$1.1m worth of shares in the AU$4.3m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.