Yahoo Finance Innovative Solutions and Support, Inc. (NASDAQ:ISSC) insiders have significant skin in the game with 34% ownership
Key Insights
Insiders appear to have a vested interest in Innovative Solutions and Support's growth, as seen by their sizeable ownership
A total of 8 investors have a majority stake in the company with 51% ownership
Every investor in Innovative Solutions and Support, Inc. (NASDAQ:ISSC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 34% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
Let's take a closer look to see what the different types of shareholders can tell us about Innovative Solutions and Support.
Check out our latest analysis for Innovative Solutions and Support
What Does The Institutional Ownership Tell Us About Innovative Solutions and Support?
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.
We can see that Innovative Solutions and Support does have institutional investors; and they hold a good portion of the company's 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Innovative Solutions and Support's historic earnings and revenue below, but keep in mind there's always more to the story.
Our data indicates that hedge funds own 5.0% of Innovative Solutions and Support. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Christopher Harborne is currently the company's largest shareholder with 15% of shares outstanding. With 9.6% and 6.1% of the shares outstanding respectively, Kevin Gilboy and Estate Of Geoffrey S. M. Hedrick are the second and third largest shareholders. Additionally, the company's CEO Shahram Askarpour directly holds 2.7% of the total shares outstanding.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Innovative Solutions and Support
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Innovative Solutions and Support, Inc.. Insiders have a US$39m stake in this US$115m business. 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.
General Public Ownership
With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Innovative Solutions and Support. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
It seems that Private Companies own 6.1%, of the Innovative Solutions and Support stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
