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If you want to know who really controls PS&C Limited (ASX:PSZ), 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 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.'
PS&C is not a large company by global standards. It has a market capitalization of AU$13m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about PSZ.
Check out our latest analysis for PS&C
What Does The Institutional Ownership Tell Us About PS&C?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Less than 5% of PS&C is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Hedge funds don't have many shares in PS&C. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of PS&C
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.
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 information suggests that insiders maintain a significant holding in PS&C Limited. Insiders own AU$2.9m worth of shares in the AU$13m 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.