Are Institutions Heavily Invested In AUB Group Limited's (ASX:AUB) Shares?




  • In Business
  • 2020-10-17 22:52:30Z
  • By Simply Wall St.
Are Institutions Heavily Invested In AUB Group Limited\
Are Institutions Heavily Invested In AUB Group Limited\'s (ASX:AUB) Shares?  

If you want to know who really controls AUB Group Limited (ASX:AUB), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

AUB Group isn't enormous, but it's not particularly small either. It has a market capitalization of AU$1.3b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about AUB Group.

Check out our latest analysis for AUB Group

What Does The Institutional Ownership Tell Us About AUB Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in AUB Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see AUB Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in AUB Group. The company's largest shareholder is Perpetual Investments Management Limited, with ownership of 12%. For context, the second largest shareholder holds about 7.7% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of AUB 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in AUB Group Limited. In their own names, insiders own AU$16m worth of stock in the AU$1.3b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public holds a 21% stake in AUB Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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. For instance, we've identified 2 warning signs for AUB Group that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

This article by Simply Wall St is general in nature. 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.

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

COMMENTS

More Related News

What Kind Of Investors Own Most Of BCB Bancorp, Inc. (NASDAQ:BCBP)?
What Kind Of Investors Own Most Of BCB Bancorp, Inc. (NASDAQ:BCBP)?

A look at the shareholders of BCB Bancorp, Inc. (NASDAQ:BCBP) can tell us which group is most powerful. Large...

Could The AGM Group Holdings Inc. (NASDAQ:AGMH) Ownership Structure Tell Us Something Useful?
Could The AGM Group Holdings Inc. (NASDAQ:AGMH) Ownership Structure Tell Us Something Useful?

The big shareholder groups in AGM Group Holdings Inc. (NASDAQ:AGMH) have power over the company. Institutions often...

What Is The Ownership Structure Like For LoopUp Group plc (LON:LOOP)?
What Is The Ownership Structure Like For LoopUp Group plc (LON:LOOP)?

If you want to know who really controls LoopUp Group plc (LON:LOOP), then you'll have to look at the makeup of its...

Meatpacker JBS to seek damages from founders after Brazil shareholder vote
Meatpacker JBS to seek damages from founders after Brazil shareholder vote

Shareholders in JBS SA on Friday cleared the way for the Brazilian food processor to sue its own controlling stakeholders and certain former managers, a rare victory for shareholder activism in Latin America's largest economy. The vote was a win for JBS's top minority shareholder, national development bank BNDES, which has been trying to hold Wesley and Joesley Batista, the heirs of the company's founder, accountable for a plunge in JBS' stock in 2017 after they confessed to bribing multiple government officials. BNDESPar, the development bank's investment arm, which is JBS's No. 2 shareholder with a 22% stake, declined to comment on the vote.

Moore Kuehn Encourages ELY, IPHI, MCEP, and XLNX Investors to Contact Law Firm
Moore Kuehn Encourages ELY, IPHI, MCEP, and XLNX Investors to Contact Law Firm

NEW YORK, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Moore Kuehn, PLLC, a law firm focusing in securities litigation located on Wall Street in downtown New York City, is investigating potential claims concerning whether the following proposed mergers are fair to shareholders.   Moore Kuehn may seek increased consideration, additional disclosures, or other relief on behalf of the shareholders of these companies: * Callaway Golf Company (NYSE: ELY) Callaway Golf has agreed to merge with Topgolf Entertainment Group. Under the proposed transaction, Callaway will issue 90 million shares of common stock to Topgolf shareholders, with Callaway owning approximately 51.5% of the combined company. *...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business