Could BIG Blockchain Intelligence Group Inc’s (CNSX:BIGG) Investor Composition Influence The Stock Price?

The big shareholder groups in BIG Blockchain Intelligence Group Inc (CNSX:BIGG) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’

With a market capitalization of CA$9m, BIG Blockchain Intelligence Group is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about BIGG.

View our latest analysis for BIG Blockchain Intelligence Group

CNSX:BIGG Ownership Summary November 2nd 18
CNSX:BIGG Ownership Summary November 2nd 18

What Does The Institutional Ownership Tell Us About BIG Blockchain Intelligence Group?

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.

BIG Blockchain Intelligence Group already has institutions on the share registry. Indeed, they own 9.5% of the company. 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. 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 BIG Blockchain Intelligence Group, (below). Of course, keep in mind that there are other factors to consider, too.

CNSX:BIGG Income Statement Export November 2nd 18
CNSX:BIGG Income Statement Export November 2nd 18

We note that hedge funds don’t have a meaningful investment in BIG Blockchain Intelligence Group. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of BIG Blockchain Intelligence Group

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.

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 BIG Blockchain Intelligence Group Inc. It has a market capitalization of just CA$9m, and insiders have CA$2m 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 mostly retail investors, collectively hold 64% of BIG Blockchain Intelligence Group shares. With this size 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 decline an acquisition or merger that may not improve profitability.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand BIG Blockchain Intelligence Group better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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 editorial-team@simplywallst.com.