Key Insights

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

• Puthugramam Chidambaran owns 69% of the company

• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in iLearningEngines, Inc. (NASDAQ:AILE) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 71% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 24% decline in share price, insiders suffered the most losses.

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

Check out our latest analysis for iLearningEngines

What Does The Institutional Ownership Tell Us About iLearningEngines?

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.

iLearningEngines already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 iLearningEngines' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in iLearningEngines. Looking at our data, we can see that the largest shareholder is the CEO Puthugramam Chidambaran with 69% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Arrowroot Capital Management, LLC is the second largest shareholder owning 5.0% of common stock, and Bruce Mehlman holds about 0.9% of the company stock. Interestingly, the third-largest shareholder, Bruce Mehlman is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.