Key Insights

• The considerable ownership by individual investors in FONAR indicates that they collectively have a greater say in management and business strategy

• The top 25 shareholders own 48% of the company

• Institutional ownership in FONAR is 45%

A look at the shareholders of FONAR Corporation (NASDAQ:FONR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week’s US$21m market cap gain, institutions too had a 45% share in those profits.

In the chart below, we zoom in on the different ownership groups of FONAR.

See our latest analysis for FONAR

What Does The Institutional Ownership Tell Us About FONAR?

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.

We can see that FONAR does have institutional investors; and they hold a good portion of the company's stock. 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 FONAR's earnings history below. Of course, the future is what really matters.

FONAR is not owned by hedge funds. Kayne Anderson Rudnick Investment Management, LLC is currently the largest shareholder, with 9.5% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.0% and 5.7%, of the shares outstanding, respectively. In addition, we found that Timothy Damadian, the CEO has 0.6% of the shares allocated to their name.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of FONAR

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.