The big shareholder groups in Cardiol Therapeutics Inc. (TSE:CRDL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in 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.

Cardiol Therapeutics is not a large company by global standards. It has a market capitalization of CA$192m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Cardiol Therapeutics.

View our latest analysis for Cardiol Therapeutics

What Does The Institutional Ownership Tell Us About Cardiol Therapeutics?

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 Cardiol Therapeutics does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Cardiol Therapeutics' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Cardiol Therapeutics. Looking at our data, we can see that the largest shareholder is the CEO David Elsley with 4.0% of shares outstanding. With 2.9% and 2.7% of the shares outstanding respectively, Eldon Smith and Mirae Asset Global Investments Co., Ltd are the second and third largest shareholders.

On studying our ownership data, we found that 24 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Cardiol Therapeutics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.