Insiders were the key beneficiaries as Cogstate Limited's (ASX:CGS) market cap rises to AU$295m

Simply Wall St · 07/01 00:53

Key Insights

  • Insiders appear to have a vested interest in Cogstate's growth, as seen by their sizeable ownership
  • A total of 4 investors have a majority stake in the company with 55% ownership
  • Institutional ownership in Cogstate is 27%

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To get a sense of who is truly in control of Cogstate Limited (ASX:CGS), it is important to understand the ownership structure of the business. With 38% 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).

As a result, insiders were the biggest beneficiaries of last week’s 29% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Cogstate.

Check out our latest analysis for Cogstate

ownership-breakdown
ASX:CGS Ownership Breakdown July 1st 2025

What Does The Institutional Ownership Tell Us About Cogstate?

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 Cogstate. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cogstate's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
ASX:CGS Earnings and Revenue Growth July 1st 2025

Cogstate is not owned by hedge funds. David Dolby is currently the company's largest shareholder with 15% of shares outstanding. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 14% by the third-largest shareholder. Martyn Myer, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Bradley O'Connor, the CEO has 3.2% of the shares allocated to their name.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Cogstate

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Cogstate Limited. Insiders have a AU$111m stake in this AU$295m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cogstate. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 8.3%, private equity firms could influence the Cogstate board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Public Company Ownership

We can see that public companies hold 5.0% of the Cogstate shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cogstate better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.