With 66% institutional ownership, Carr's Group plc (LON:CARR) is a favorite amongst the big guns




  • In Business
  • 2022-12-01 12:30:50Z
  • By Simply Wall St.
 

To get a sense of who is truly in control of Carr's Group plc (LON:CARR), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 66% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

In the chart below, we zoom in on the different ownership groups of Carr's Group.

View our latest analysis for Carr's Group

What Does The Institutional Ownership Tell Us About Carr's Group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Carr's Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Carr's 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. We note that hedge funds don't have a meaningful investment in Carr's Group. Heygate & Sons Limited is currently the largest shareholder, with 13% of shares outstanding. FMR LLC is the second largest shareholder owning 9.7% of common stock, and Artemis Investment Management LLP holds about 6.0% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Carr's Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Carr's Group plc in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just UK£111m, and the board has only UK£672k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Carr's Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 13%, of the Carr's Group stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. To that end, you should learn about the 2 warning signs we've spotted with Carr's Group (including 1 which shouldn't be ignored) .

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.

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Halcyon Agri Corporation Limited (SGX:5VJ) has caught the attention of institutional investors who hold a sizeable 46% stake
Halcyon Agri Corporation Limited (SGX:5VJ) has caught the attention of institutional investors who hold a sizeable 46% stake

To get a sense of who is truly in control of Halcyon Agri Corporation Limited ( SGX:5VJ ), it is important to...

While public companies own 25% of Fiamma Holdings Berhad (KLSE:FIAMMA), private companies are its largest shareholders with 33% ownership
While public companies own 25% of Fiamma Holdings Berhad (KLSE:FIAMMA), private companies are its largest shareholders with 33% ownership

A look at the shareholders of Fiamma Holdings Berhad ( KLSE:FIAMMA ) can tell us which group is most powerful. The...

A great week that adds to Ready Capital Corporation
A great week that adds to Ready Capital Corporation's (NYSE:RC) one-year returns, institutional investors who own 54% must be happy

If you want to know who really controls Ready Capital Corporation ( NYSE:RC ), then you'll have to look at the makeup...

With 36% ownership, Home Plate Acquisition Corp. (NASDAQ:HPLT) has piqued the interest of hedge funds investors
With 36% ownership, Home Plate Acquisition Corp. (NASDAQ:HPLT) has piqued the interest of hedge funds investors

Every investor in Home Plate Acquisition Corp. ( NASDAQ:HPLT ) should be aware of the most powerful shareholder groups...

Immuneering Corporation (NASDAQ:IMRX) insiders, who hold 31% of the firm would be disappointed by the recent pullback
Immuneering Corporation (NASDAQ:IMRX) insiders, who hold 31% of the firm would be disappointed by the recent pullback

To get a sense of who is truly in control of Immuneering Corporation ( NASDAQ:IMRX ), it is important to understand the...

Leave a Comment

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

Cancel reply

Comments

  • nedalic142
    (2022-12-01 14:38:45Z)

    Pretty great post. I simply stumbled upon your blog and wanted to mention that I have really loved surfing your blog posts. Great set of tips from the master himself. Excellent ideas. Thanks for the Awesome tips Keep it up!
    Recommended safety playground

    REPLY
  • safetoto
    (2022-12-02 02:41:56Z)

    Hello ! I am the one who writes posts on these topics safetoto I would like to write an article based on your article. When can I ask for a review?

    REPLY

Top News: Business