![]() ![]() Consider for instance, the ever-present spectre of investment risk. But to truly gain insight, we need to consider other information, too. I find it very interesting to look at who exactly owns a company. 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. The general public- including retail investors - own 11% stake in the company, and hence can't easily be ignored. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling. In this case, they own around US$87m worth of shares (at current prices). It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. ![]() Shareholders would probably be interested to learn that insiders own shares in Encore Wire Corporation. However, on some occasions too much power is concentrated within this group. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Our data reflects individual insiders, capturing board members at the very least. The definition of company insiders can be subjective and does vary between jurisdictions. So it could gain more attention, down the track. While there is some analyst coverage, the company is probably not widely covered. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. In addition, we found that Daniel Jones, the CEO has 2.7% of the shares allocated to their name. are the second and third largest shareholders. With 11% and 7.5% of the shares outstanding respectively, The Vanguard Group, Inc. The company's largest shareholder is BlackRock, Inc., with ownership of 15%. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. NasdaqGS:WIRE Earnings and Revenue Growth February 9th 2022 Of course, the future is what really matters. It's therefore worth looking at Encore Wire's earnings history below. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. This can indicate that the company has a certain degree of credibility in the investment community. We can see that Encore Wire does have institutional investors and they hold a good portion of the company's stock. So they generally do consider buying larger companies that are included in the relevant benchmark index. Institutional investors commonly compare their own returns to the returns of a commonly followed index. NasdaqGS:WIRE Ownership Breakdown February 9th 2022 What Does The Institutional Ownership Tell Us About Encore Wire? ![]()
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