Key Insights

• KORU Medical Systems' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• A total of 9 investors have a majority stake in the company with 51% ownership

• Institutional ownership in KORU Medical Systems is 32%

A look at the shareholders of KORU Medical Systems, Inc. (NASDAQ:KRMD) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 32% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about KORU Medical Systems.

See our latest analysis for KORU Medical Systems

What Does The Institutional Ownership Tell Us About KORU Medical Systems?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that KORU Medical Systems does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of KORU Medical Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 24% of KORU Medical Systems. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Horton Capital Management, LLC is the largest shareholder with 17% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 7.8% of the stock. Furthermore, CEO Linda Tharby is the owner of 2.3% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.