To understand who really controls Asure Software, Inc. (NASDAQ:ASUR), it’s important to understand the business’s ownership structure. The institution owns 49% of his shares and owns the largest stake in the company. In other words, the group faces the greatest upside potential (or downside risk).
Institutional investors were therefore the group most affected after the company’s market capitalization fell to $158 million last week, after its share price fell 12%. Needless to say, the recent loss, which adds even more to his 8.2% year-over-year loss for shareholders, may not fare well, especially for this category of shareholder. Institutions, often referred to as “market makers,” wield great power in influencing the price dynamics of any stock. Therefore, if Asure Software’s stock price continues to decline, institutional investors may feel compelled to sell their shares, which may not be ideal for individual investors.
Let’s take a closer look at each type of Asure Software owner, starting with the table below.
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What does institutional ownership tell you about Asure software?
Because institutional investors typically measure themselves against benchmarks when reporting to their investors, they are often more enthusiastic about stocks when included in a major index. Most companies are expected to have several institutions registered, especially if they are growing.
Asure Software already has an institution in the Stock Register. In fact, they own a sizeable stake in the company. This indicates a certain level of credibility among professional investors. But that fact alone cannot be relied upon. Because institutional investors, like everyone else, sometimes make bad investments. When shares are owned by multiple institutions, there is always the risk of getting into a “congested deal”. If such a deal goes wrong, multiple parties may compete to sell the stock fast. This risk is higher for companies with no history of growth. Below are some historical earnings and earnings for Asure Software, but remember there’s always more to the story.
A hedge fund appears to own 14% of Asure Software stock. This catches my attention because hedge funds sometimes try to influence management or make changes that create short-term value for shareholders. The company’s largest shareholder is Private Capital Management, LLC, with his 17% ownership. ArrowMark Colorado Holdings, LLC is the second largest shareholder, owning his 7.7% of the common stock, while Archon Capital Management LLC owns approximately 6.3% of the company’s shares. Additionally, it turns out that CEO Patrick Goepel has allocated his 4.5% stake to his name.
Further research revealed that eight of the top shareholders accounted for about 54% of the registry. This means that in addition to the large shareholders there are a small number of minor shareholders, which somewhat balance each other’s interests.
Researching institutional ownership is a good way to measure and filter a stock’s expected performance. The same can be achieved by studying analyst sentiment. There are quite a few analysts who cover stocks, so it may be useful to know their collective views on the future.
Insider Ownership of Asure Software
While the precise definition of an insider can be subjective, we believe that most directors are insiders. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.
Most people view insider ownership positively because it can indicate that the board works well with other shareholders. However, in some cases, this group may be overly privileged.
You can report that an insider owns Asure Software, Inc. stock. With a market capitalization of just his US$158 million, the insider owns US$10 million worth of stock in her name. It’s nice to see insider investment, but we usually want to see higher insider holdings. It might be worth checking to see if those insiders are buying.
general public
The public, including private investors, owns 26% of the company’s shares, so they can’t simply ignore it. Ownership of this magnitude is substantial, but may not be sufficient to change company policy if decisions are out of sync with other major shareholders.
Private Company Ownership
A privately held company appears to own 4.6% of Asure Software’s stock. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into the owners of these private companies. An insider or other party may have an interest in the stock of a public company through another private company.
Next steps:
It’s well worth considering the different groups that own companies, but there are other factors that are even more important.Case in point: we found Asure Software’s One Warning Sign you should know.
But in the end it’s the future, not the past will determine how well the owner of this business will do. Therefore, we encourage you to check out this free report that shows whether analysts are predicting a brighter future.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …