Can We See Significant Insider Ownership On The 22nd Century Group, Inc. (NYSEMKT:XXII) Share Register?

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The big shareholder groups in 22nd Century Group, Inc. (NYSEMKT:XXII) 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.'

With a market capitalization of US$252m, 22nd Century Group is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about XXII.

See our latest analysis for 22nd Century Group

What Does The Institutional Ownership Tell Us About 22nd Century Group?

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 own 28% of 22nd Century Group. 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 22nd Century Group's earnings history, below. Of course, the future is what really matters.

Hedge funds don't have many shares in 22nd Century Group. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of 22nd Century Group

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in 22nd Century Group, Inc.. In their own names, insiders own US$20m worth of stock in the US$252m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.