From a fairly weak IPO start, GRGD has staged an impressive turnaround and has gained nice momentum on the back of good numbers. We would perhaps look more at trading volume rather than actual percentage ownership. If volume is enough, then the high ownership is not overly concerning. Now, it cannot be ignored, though, as at some point an insider could sell. This could both hurt the stock price (if the sale is big) and investor sentiment (if insiders are viewed as bailing out). So it cannot be ignored, and some investors will give a stock a slight discount on this 'overhang'. We were initially cautious on GRGD, and were right for a couple of months only. Growth looks good, and valuation is 'ok' at 20X earnings. EPS last quarter beat estimates by ~16%.
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