Stock Analysis

What Percentage Of Intralot S.A. Integrated Lottery Systems and Services (ATH:INLOT) Shares Do Insiders Own?

ATSE:INLOT
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The big shareholder groups in Intralot S.A. Integrated Lottery Systems and Services (ATH:INLOT) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Intralot Integrated Lottery Systems and Services is not a large company by global standards. It has a market capitalization of €60m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about INLOT.

View our latest analysis for Intralot Integrated Lottery Systems and Services

ATSE:INLOT Ownership Summary, November 24th 2019
ATSE:INLOT Ownership Summary, November 24th 2019

What Does The Institutional Ownership Tell Us About Intralot Integrated Lottery Systems and Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors own 16% of Intralot Integrated Lottery Systems and Services. 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 Intralot Integrated Lottery Systems and Services's earnings history, below. Of course, the future is what really matters.

ATSE:INLOT Income Statement, November 24th 2019
ATSE:INLOT Income Statement, November 24th 2019

Hedge funds don't have many shares in Intralot Integrated Lottery Systems and Services. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Intralot Integrated Lottery Systems and Services

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. 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.

It seems insiders own a significant proportion of Intralot S.A. Integrated Lottery Systems and Services. Insiders have a €17m stake in this €60m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 55% of Intralot Integrated Lottery Systems and Services shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.

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