key insights
Significantly high institutional ownership means Stride Property Group’s share price is sensitive to trading activity.
A total of 6 investors hold a majority stake in the company and have 50% ownership.
Analyst forecast data, combined with ownership research, can help you better assess a company’s future performance.
To understand who actually controls Stride Property Group (NZSE:SPG), it’s important to understand the ownership structure of the business. We can see that institutional investors control the majority, with 62% of the ownership in the company. In other words, this group faces the greatest upside potential (or downside risk).
Given the vast amounts of capital and research power at their disposal, institutional ownership tends to be particularly heavy for retail 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 delve deeper into each type of owner at Stride Property Group, starting with the table below.
Check out our latest analysis for Stride Property Group.
Ownership breakdown
What does facility ownership tell us about Stride Property Group?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
We can see that Stride Property Group does have institutional investors. And they own a significant portion of the company’s stock. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Stride Property Group, (below). Of course, keep in mind that there are other factors to consider as well.
Profit and revenue growth
Institutional investors own over 50% of a company, so when they come together they can strongly influence board decisions. Note that hedge funds don’t have a meaningful investment in Stride Property Group. BlackRock, Inc. is currently the largest shareholder with 15% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 13% by the third largest shareholder.
We also observed that the top 6 shareholders account for more than half of the shareholder registry, with a few small shareholders balancing the interests of the large shareholders to some extent.
story continues
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 significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership in Stride Property Group
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. 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.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
Our data suggests that insiders own less than 1% of Stride Property Group shares in their own names. The company’s market capitalization is just NZ$766m, and the board has only NZ$3m of shares in its own name. Many people tend to prefer boards with larger stakes. As a next step, we recommend checking out this free overview of insider buying and selling.
Open to the public
With a 38% ownership interest, the general public, primarily retail investors, has some influence over Stride Property Group. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
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. Case in point: We’ve spotted 1 warning sign for Stride Property Group you should be aware of.
After all, the future is what matters most. Access this free report on analyst forecasts for the company.
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.
Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
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.
