key insights
A look at the shareholders of Rights and Issues Investment Trust Public Limited Company (LON:RIII) can tell us which group is the most powerful. We can see that institutional investors control the majority of the company, with their ownership of 49%. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Because institutional investors have vast resources and liquidity, their investment decisions tend to have significant influence, especially for individual investors. Therefore, a significant portion of institutional funds invested in a company is usually a huge vote of confidence in the company’s future.
Let’s dig deeper into each type of rights and issue mutual fund owner, starting with the chart below.
See our latest analysis on rights and issues.
Ownership breakdown
What does institutional ownership tell us about mutual fund rights and issues?
Financial institutions typically measure themselves against a benchmark when reporting to their own investors, so they often see increased enthusiasm for a stock once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
As you can see, institutional investors have a significant stake in Rights and Issues mutual fund. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Rights and Issues Investment Trust’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Profit and revenue growth
Rights and Issues Mutual funds are not owned by hedge funds. Jarvis Securities plc, Asset Management Arm is currently the largest shareholder with 12% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 9.6% by the third largest shareholder. Simon John Knott, the third largest shareholder, also holds the title of member of the board of directors.
On closer inspection, we found that more than half of the company’s shares are owned by the top 6 shareholders, suggesting that the interests of large shareholders are balanced out to some extent by smaller shareholders.
While researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. . Based on our information, there aren’t any analyst coverage of this stock, so it’s probably little known.
Regarding rights ownership and issuance by insiders Investment trusts
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to be held accountable for board decisions.
It appears that insiders own a significant portion of Rights and Issues Investment Trust Public Limited Company. Insiders own £40m worth of shares in the UK£117m company. While this shows alignment with shareholders, it’s worth noting that the company is still very small. Some insiders may have founded this business. You can click here to see if insiders have been buying or selling.
Open to the public
The general public, usually retail investors, owns 12% of Rights and Issues Investment Trust’s shares. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
Public company ownership
We note that listed companies hold 3.4% of Rights and Issues Investment Trust’s outstanding shares. Although we can’t say for sure, this suggests that they have intertwined business interests. It’s worth keeping an eye on any changes in ownership in this area, as this could be a strategic stake.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well.
I always like to check the history of revenue growth. You can do that too by accessing this detailed Graph historical revenue and profit free chart.
Of course, this may not be the best stock to buy. Therefore, we recommend you to take a look at our free collection of interesting prospects with favorable financials.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.