Individual investors are Super Retail Group Limited’s (ASX:SUL) biggest owners and were hit after market cap dropped AU$176m

Key Insights

  • Super Retail Group’s significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public

  • A total of 25 investors have a majority stake in the company with 50% ownership

  • Insider ownership in Super Retail Group is 29%

Every investor in Super Retail Group Limited (ASX:SUL) should be aware of the most powerful shareholder groups. With 47% stake, individual investors 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).

While insiders who own 29% came under pressure after market cap dropped to AU$3.3b last week,individual investors took the most losses.

Let’s delve deeper into each type of owner of Super Retail Group, beginning with the chart below.

Check out our latest analysis for Super Retail Group

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ownership-breakdown

What Does The Institutional Ownership Tell Us About Super Retail Group?

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 Super Retail Group. 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 Super Retail Group’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growthearnings-and-revenue-growth

earnings-and-revenue-growth

Super Retail Group is not owned by hedge funds. Reginald Rowe is currently the company’s largest shareholder with 28% of shares outstanding. Challenger Limited is the second largest shareholder owning 4.7% of common stock, and The Vanguard Group, Inc. holds about 3.5% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Super Retail Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Super Retail Group Limited. It has a market capitalization of just AU$3.3b, and insiders have AU$978m worth of shares in their own names. That’s quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Super Retail Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we’ve spotted 1 warning sign for Super Retail Group you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


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