Every investor in ContextVision AB (publ) (OB:COV) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of kr752m, ContextVision is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about COV.
See our latest analysis for ContextVision
What Does The Institutional Ownership Tell Us About ContextVision?
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.
ContextVision already has institutions on the share registry. Indeed, they own 16% of the company. 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. 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 ContextVision, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in ContextVision. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of ContextVision
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.
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.
It seems insiders own a significant proportion of ContextVision AB (publ). Insiders own kr227m worth of shares in the kr752m 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.