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The big shareholder groups in SS Lazio SpA (BIT:SSL) 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 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 €113.1m, S.S. Lazio 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 shares in the company. We can zoom in on the different ownership groups, to learn more about SSL.
Check out our latest analysis for S.S. Lazio
What Does The Lack Of Institutional Ownership Tell Us About S.S. Lazio?
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. S.S. Lazio might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
S.S. Lazio is not owned by hedge funds. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of S.S. Lazio
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
It seems that insiders own more than half the SS Lazio SpA stock. This gives them a lot of power. Given it has a market cap of €113.1m, that means they have €75.8m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 33.4% ownership, the general public have some degree of sway over SSL. 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.