EMVision Medical Devices Ltd's (ASX:EMV) market cap rose AU$60m last week; retail investors who hold 54% profited and so did insiders

Key Insights

• EMVision Medical Devices' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 21 investors have a majority stake in the company with 42% ownership
• Insider ownership in EMVision Medical Devices is 23%

If you want to know who really controls EMVision Medical Devices Ltd (ASX:EMV), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 54% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 24% increase in the stock price last week, retail investors profited the most, but insiders who own 23% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of EMVision Medical Devices.

Check out our latest analysis for EMVision Medical Devices

What Does The Lack Of Institutional Ownership Tell Us About EMVision Medical Devices?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of EMVision Medical Devices, for yourself, below.

EMVision Medical Devices is not owned by hedge funds. Our data shows that Keysight Technologies, Inc. is the largest shareholder with 9.6% of shares outstanding. Scott Kirkland is the second largest shareholder owning 5.5% of common stock, and Ryan Laws holds about 4.2% of the company stock. Scott Kirkland, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our studies suggest that the top 21 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of EMVision Medical Devices

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.

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 EMVision Medical Devices Ltd. It has a market capitalization of just AU$226m, and insiders have AU$52m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in EMVision Medical Devices, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 5.6%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 8.7% of the EMVision Medical Devices shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand EMVision Medical Devices better, we need to consider many other factors. For example, we've discovered 2 warning signs for EMVision Medical Devices (1 is significant!) that you should be aware of before investing here.

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.

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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.