Stock Analysis

What Type Of Shareholders Make Up Advanced Emissions Solutions, Inc.'s (NASDAQ:ADES) Share Registry?

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NasdaqGM:ADES
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The big shareholder groups in Advanced Emissions Solutions, Inc. (NASDAQ:ADES) 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. Companies that used to be publicly owned tend to have lower insider ownership.

Advanced Emissions Solutions is a smaller company with a market capitalization of US$107m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Advanced Emissions Solutions.

Check out our latest analysis for Advanced Emissions Solutions

ownership-breakdown
NasdaqGM:ADES Ownership Breakdown February 6th 2021

What Does The Institutional Ownership Tell Us About Advanced Emissions Solutions?

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.

As you can see, institutional investors have a fair amount of stake in Advanced Emissions Solutions. 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 Advanced Emissions Solutions' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGM:ADES Earnings and Revenue Growth February 6th 2021

It would appear that 26% of Advanced Emissions Solutions shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Alta Fundamental Advisers, LLC is currently the company's largest shareholder with 11% of shares outstanding. Apollo Global Management, Inc. is the second largest shareholder owning 9.9% of common stock, and Franklin Resources, Inc. holds about 9.5% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Advanced Emissions Solutions

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Advanced Emissions Solutions, Inc.. It has a market capitalization of just US$107m, and insiders have US$3.6m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 32% stake in Advanced Emissions Solutions. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Advanced Emissions Solutions that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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