Key Insights

• Significant insider control over Ultralife implies vested interests in company growth

• The top 5 shareholders own 53% of the company

• Recent purchases by insiders

Every investor in Ultralife Corporation (NASDAQ:ULBI) should be aware of the most powerful shareholder groups. With 36% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Notably, insiders have bought shares recently. This could signal that stock prices could go up and insiders are here for it.

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

See our latest analysis for Ultralife

What Does The Institutional Ownership Tell Us About Ultralife?

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.

Ultralife already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Ultralife, (below). Of course, keep in mind that there are other factors to consider, too.

Ultralife is not owned by hedge funds. Bradford Whitmore is currently the company's largest shareholder with 34% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.6% and 5.9% of the stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Ultralife

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.