How Do You Determine the Insider Ownership Percentage of a Given Company?

If you’re an investor, it pays to know what the company’s owners and most important shareholders are doing. By watching the trading activity of corporate insiders and large institutional investors, it’s easier to get a sense of a stock’s prospects.

  • Go to the SEC EDGAR
  • Search for the company you are looking for
  • Under “Filing Type” in the results, type in “DEF 14A” which will show only the Definitive Proxy Statements
  • Click the most recent DEF 14A, then do a search of the document for something like “Ownership” and there will be a table that shows different executives and directors (as well as major external investors) and their ownership stake.

Note: this only shows a snapshot as of the date the DEF 14A was filed. Insiders buy and sell and in the interim, as do major external investors, so if you want to keep track of that, you need to either also look at SC 13D and SC 13G filings (for external investors) and insider filings (this can be tedious), or go to a site like Yahoo Finance (“Insider Ownership” on the left) which takes care of tracking that for you.

However, I wouldn’t suggest skipping the third party filings. They often have disclosures of letters sent to management, which can be quite interesting.

Written on August 14, 2021