【does a fielder's choice count against batting average】Could The IXUP Limited (ASX:IXU) Ownership Structure Tell Us Something Useful?

Every investor in IXUP Limited (

ASX:IXU

) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger,does a fielder's choice count against batting average smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

IXUP is not a large company by global standards. It has a market capitalization of AU$16m, which means it wouldn’t have the attention of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about IXU.

Check out our latest analysis for IXUP

ASX:IXU Ownership Summary January 3rd 19

What Does The Institutional Ownership Tell Us About IXUP?

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.

Since institutions own under 5% of IXUP, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

ASX:IXU Income Statement Export January 3rd 19

It would appear that 9.2% of IXUP shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of IXUP

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. 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.

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.

Story continues

Our most recent data indicates that insiders own a reasonable proportion of IXUP Limited. It has a market capitalization of just AU$16m, and insiders have AU$4.3m worth of shares in their own names. I 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 holds a 29% stake in IXU. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 31%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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 always like to check for a

history of revenue growth

. You can too, by accessing this free chart of

historic revenue and earnings in this

detailed graph

.

Of course

this may not be the best stock to buy

. Therefore, you may wish to see our

free

collection of interesting prospects boasting favorable financials.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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