Media technology

What kind of shareholders make up the Integrated Media Technology Limited (NASDAQ:IMTE) share register?

If you want to know who actually controls Integrated Media Technology Limited (NASDAQ:IMTE), then you’ll need to look at the composition of its share register. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. 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 wallet”.

With a market capitalization of US$101 million, Integrated Media Technology is a small cap stock, so it may not be well known to many institutional investors. Looking at our ownership group data (below), it appears that institutional investors have yet to buy much of the company. Let’s take a closer look at what different types of shareholders can tell us about Integrated Media Technology.

Check out our latest analysis for Integrated Media Technology

NasdaqCM: IMTE Ownership Breakdown March 17, 2022

What does the lack of institutional ownership tell us about embedded media technology?

Small companies that are not very actively traded often lack institutional investors, but it is less common to see large companies without them.

There can be various reasons why no institution owns shares in a company. Typically, small newly listed companies do not attract much attention from fund managers, as it would not be possible for large fund managers to gain a significant position in the company. On the other hand, it’s always possible for professional investors to avoid a company because they think it’s not the best place for their money. Integrated Media Technology may not have the kind of track record that institutions are looking for, or maybe they just haven’t studied the company closely.

earnings-and-revenue-growth
NasdaqCM: IMTE Earnings and Revenue Growth March 17, 2022

Hedge funds don’t have a lot of shares in Integrated Media Technology. Hongquan Bi is currently the company’s largest shareholder with 18% of the outstanding shares. With 11% and 7.5% of the outstanding shares respectively, CIMB Limited and NextGlass Technologies Corporation are the second and third largest shareholders. Additionally, the company’s CEO, Xiaodong Zhang, directly owns 2.4% of the total shares outstanding.

Our research also shed light on the fact that around 50% of the company is controlled by the top 5 shareholders, suggesting that these owners wield significant influence over the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider Ownership of Embedded Multimedia Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Integrated Media Technology Limited. Insiders hold $32 million worth of stock in the $101 million company. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 43% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Private equity ownership

With a 6.7% stake, private equity firms could sway Integrated Media Technology’s board. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.

Private Company Ownership

Our data indicates that private companies own 18% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand embedded media technology, we need to consider many other factors. Example: we have identified 4 Warning Signs for Integrated Media Technology you should be aware, and 3 of them don’t suit us too much.

Sure this may not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.


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