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If you want to know who really controls Strix Group Plc (LON: KETL), then you will have to look at the composition of its share register. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that were previously owned by the state tend to have fewer insiders.
Strix Group has a market cap of £ 644million, so we would expect some institutional investors to have taken notice of the action. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Strix Group.
See our latest analysis for Strix Group
What does institutional ownership tell us about Strix Group?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors have a significant stake in Strix Group. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the Strix Group profit history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Strix Group is not owned by hedge funds. Octopus Investments Limited is currently the largest shareholder of the company with 11% of the shares outstanding. In comparison, the second and third shareholders hold around 5.8% and 5.5% of the capital. Additionally, CEO Mark Victor Bartlett owns 1.6% of the company’s shares.
We also observed that the top 9 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider ownership of Strix Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that the insiders own shares in Strix Group Plc. In their own name, the insiders own £ 18million worth of shares in the £ 644million company. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 16% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private shareholders
Private equity firms hold an 11% stake in Strix Group. This suggests that they can influence key policy decisions. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
Next steps:
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Take risks for example – Strix Group has 4 warning signs we think you should be aware.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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