Is Escalade, Incorporated's (NASDAQ:ESCA) Shareholder Ownership Skewed Towards Insiders?

Simply Wall St
·4 min read

If you want to know who really controls Escalade, Incorporated (NASDAQ:ESCA), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

With a market capitalization of US$315m, Escalade is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Escalade.

See our latest analysis for Escalade

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Escalade?

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.

As you can see, institutional investors have a fair amount of stake in Escalade. 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 Escalade, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Escalade. The company's largest shareholder is Robert Griffin, with ownership of 16%. With 7.0% and 4.5% of the shares outstanding respectively, Guagenti Family Limited Partnership and BlackRock, Inc. are the second and third largest shareholders. In addition, we found that Walter Glazer, the CEO has 2.1% of the shares allocated to their name.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Escalade

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Escalade, Incorporated. Insiders have a US$80m stake in this US$315m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 36% ownership, the general public have some degree of sway over Escalade. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 10%, of the Escalade stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Escalade has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Warren Buffett's fans plot their own course for when he leaves

    Warren Buffett, the 93-year-old billionaire chief of Berkshire Hathaway, mulled his future in telling shareholders on Saturday that if he were lucky, he would have another six or seven years but added that "it could end tomorrow." Tens of thousands of shareholders, who over the weekend made their pilgrimage to see the Oracle of Omaha in person at Berkshire's annual shareholder meeting, hope it doesn't end that soon. "The crowds will be smaller when Buffett isn't here, but the company will still do well," said Jason Garner, a 20-year-old student from Queens University in Kingston, Ontario.

  • Rachel Roddy’s recipe for chestnut pasta with mushrooms and herbs

    Sweet chestnuts make a savoury flour that’s just perfect for this cracking, herby mushroom pasta

  • The pet I’ll never forget: Babyleaf, the feral kitten who tamed me

    She came into my life just when I needed her, and together we worked on our traumas. But it could not last …

  • Stepping out of Dad’s shadow: Tommy Prine returns to The Burl in Lexington

    Youngest son of late John Prine released a solo album last year.

  • FOCUS-Denny's faces proxy vote over pig gestation crate pledge

    An upcoming shareholder vote at Denny’s Corp could pressure the company to set targets for reducing its use of pork from suppliers that keep pregnant pigs in tight confinement, called gestation crates. The Humane Society of the United States, a shareholder in Denny’s, filed the proposal ahead of the diner chain’s May 15 annual investor meeting. The proposal has been backed by Institutional Shareholder Services, an influential proxy advisory firm which often guides how shareholders vote on hot-button issues.

  • Massachusetts top court to hear challenges to gig worker ballot measures

    The top Massachusetts court on Monday is set to consider whether the state's voters will get to decide two ballot proposals in November that would redefine the relationship between app-based companies like Uber Technologies and Lyft and their drivers - one backed by industry and the other by labor. The Massachusetts Supreme Judicial Court first will hear arguments in a labor-backed challenge to a ballot proposal by an industry-supported group that would ask voters to declare that the drivers for the companies are not employees but rather independent contractors entitled to some new benefits. The court then will hear a challenge by a conservative think tank to a proposed ballot measure supported by the Service Employees International Union's Local 32BJ that would ask voters to allow Uber and Lyft drivers to unionize.

  • Ava Phillippe slams 'toxic' bodyshamers calling her 'too fat and thin'

    Ava Phillippe has called out trolls who slammed her body as fat and thin.

  • Jennifer Connelly wants to go back to college

    Jennifer Connelly has confessed she still wants to go back to college to finish her education after dropping out.

  • Jasmine Jobson: 'Going into foster care was the best thing I ever did!'

    Jasmine Jobson thinks that going into foster care was the "best thing" she ever did and wants to serve as an inspiration to other children in the system.

  • Vanessa Marcil sticks up for Megan Fox as she's trolled for Machine Gun Kelly relationship

    Vanessa Marcil has stood up for Megan Fox after she was trolled for sticking by Machine Gun Kelly.

  • Reviving Britain’s forgotten countryside should be a national priority

    How much does Whitehall hate rural voters? Releasing apex predators into the countryside should give us a clue. Now beleaguered rural voters face being cut off from the modern world completely.

  • ‘Missed warning signs.’ MO child welfare failed kids who died of fentanyl, panel says

    “The loss of a child to a drug-related incident is a heartbreaking occurrence that should never transpire. It is imperative that we collectively strive for improvement on both a personal and communal level.”

  • Barbara Stanwyck, an obscene typo and the sordid story behind Double Indemnity

    Surprisingly, the idea for Double Indemnity – Billy Wilder’s film noir masterpiece about a gold-digging femme fatale and the spineless insurance agent who falls under her spell – was prompted by a catastrophic printing mistake at a smalltown rag during the Roaring Twenties. Reading through the freshly printed first edition, one of the editors was shocked to see an ad for women’s underwear which should have read: “If these sizes are too big, take a tuck in them.”

  • NEWSMAKER-Warren Buffett's successor Greg Abel seen preserving Berkshire's culture

    When Greg Abel succeeds Warren Buffett at the helm of Berkshire Hathaway , he is expected to preserve the culture at the behemoth even if he does not match the star power of his legendary boss. A 25-year Berkshire veteran, Vice Chairman Abel, 61, is expected by investors and analysts to uphold the $865 billion conglomerate's track record of investing in companies for the long haul and eschewing dividend payments to shareholders. Berkshire, which owns railroads, insurance companies and an ice-cream maker, has been planning for decades for the eventuality when Buffett, 93, who has run the company since 1965, is no longer there.

  • Australia accuses China of unsafe behavior when fighter jet released flares in a helicopter's path

    Australia has protested to Beijing that a Chinese fighter jet endangered an Australian navy helicopter with flares in international waters, officials said Monday. The incident occurred on Saturday as the Australian air warfare destroyer HMAS Hobart was enforcing United Nations Security Council sanctions against North Korea in international waters in the Yellow Sea, the Defense Department said in a statement.

  • Searing musical responses to human suffering, plus the best of May’s classical concerts

    The centenary this year of Luigi Nono’s birth is not being celebrated as widely as the radical Venetian composer deserves, though the challenges of any such undertaking are easy to see. A couple of decades ago, the BBC Symphony Orchestra might well have devoted one of its famed annual monographic composer weekends to an exploration of Nono’s music, but in place of such three-day festivals it now offers single Total Immersion days: even so, it still shied away from an all-Nono event, packaging hi

  • Pound rises before BoE meets, ignores Conservatives' local election losses

    The pound was higher on Monday before the Bank of England's policy announcement later this week, while markets took local election results in their stride after crushing defeats for the ruling Conservatives. The BoE is widely expected to keep its key interest rate unchanged at 5.25% when it announces its policy on Thursday, as it has done since lifting to that level in August last year. "We expect the MPC (Monetary Policy Committee) to soften its communication, priming the markets for an imminent start to a cutting cycle," said Danske Bank analyst Kirstine Kundby-Nielsen.

  • Bomb threat prompts evacuation of British Airways flight to London from Bermuda

    Passengers reportedly disembarked the aircraft at Bermuda’s international airport on Sunday night

  • What ‘super wealthy’ in retirement looks like — how do your savings stack up to the top 1%, 5% and 10% of retirees?

    It's a pretty nice view from the top.

  • James Corden's rarely-seen wife stuns in gold mini dress - it'll make your jaw drop

    James Corden's wife Julia Carey looked stunning on the arm of her Gavin and Stacey star husband wearing a gold mini dress and heels as the pair attended Anna Wintour's pre-Met Gala dinner in New York City.