Do Insiders Own Lots Of Shares In BIG Blockchain Intelligence Group Inc. (CNSX:BIGG)?

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If you want to know who really controls BIG Blockchain Intelligence Group Inc. (CNSX:BIGG), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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$9.0m, BIG Blockchain Intelligence Group is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about BIGG.

Check out our latest analysis for BIG Blockchain Intelligence Group

CNSX:BIGG Ownership Summary, April 29th 2019
CNSX:BIGG Ownership Summary, April 29th 2019

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that BIG Blockchain Intelligence Group does have institutional investors; and they hold 10.0% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at BIG Blockchain Intelligence Group’s earnings history, below. Of course, the future is what really matters.

CNSX:BIGG Income Statement, April 29th 2019
CNSX:BIGG Income Statement, April 29th 2019

Hedge funds don’t have many shares in BIG Blockchain Intelligence Group. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of BIG Blockchain Intelligence Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own a reasonable proportion of BIG Blockchain Intelligence Group Inc.. It has a market capitalization of just CA$9.0m, and insiders have CA$2.3m 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 — mostly retail investors — own 64% of BIG Blockchain Intelligence Group . This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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.

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. 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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.