Yahoo Finance While institutions own 33% of ReposiTrak, Inc. (NYSE:TRAK), retail investors are its largest shareholders with 34% ownership
Key Insights
ReposiTrak's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 8 shareholders own 51% of the company
Every investor in ReposiTrak, Inc. (NYSE:TRAK) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 33% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's delve deeper into each type of owner of ReposiTrak, beginning with the chart below.
View our latest analysis for ReposiTrak
What Does The Institutional Ownership Tell Us About ReposiTrak?
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.
ReposiTrak already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 ReposiTrak, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in ReposiTrak. The company's CEO Randall Fields is the largest shareholder with 25% of shares outstanding. With 6.3% and 4.4% of the shares outstanding respectively, Handelsbanken Asset Management and Rice Hall James & Associates, LLC are the second and third largest shareholders.
We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 ReposiTrak
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
It seems insiders own a significant proportion of ReposiTrak, Inc.. It has a market capitalization of just US$293m, and insiders have US$96m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 34% stake in ReposiTrak. 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.
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 access this interactive graph of past earnings, revenue and cash flow, for free.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
