How Much Of Aptinyx Inc. (NASDAQ:APTX) Do Insiders Own?

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A look at the shareholders of Aptinyx Inc. (NASDAQ:APTX) can tell us which group is most powerful. 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.

Aptinyx is a smaller company with a market capitalization of US$109m, so it may still be flying under the radar of 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 delve deeper into each type of owner, to discover more about APTX.

See our latest analysis for Aptinyx

NasdaqGS:APTX Ownership Summary, November 9th 2019
NasdaqGS:APTX Ownership Summary, November 9th 2019

What Does The Institutional Ownership Tell Us About Aptinyx?

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 Aptinyx does have institutional investors; and they hold 20% of the 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. 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 Aptinyx, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqGS:APTX Income Statement, November 9th 2019
NasdaqGS:APTX Income Statement, November 9th 2019

Aptinyx is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Aptinyx

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in Aptinyx Inc.. In their own names, insiders own US$8.1m worth of stock in the US$109m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.