Institutional investors must be pleased after a 13% gain last week that adds to Alpha Group International plc's (LON:ALPH) one-year returns

Key Insights

• Significantly high institutional ownership implies Alpha Group International's stock price is sensitive to their trading actions
• A total of 8 investors have a majority stake in the company with 53% ownership
• Insiders own 20% of Alpha Group International

Every investor in Alpha Group International plc (LON:ALPH) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 13% last week. The one-year return on investment is currently 5.8% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Alpha Group International, beginning with the chart below.

View our latest analysis for Alpha Group International

What Does The Institutional Ownership Tell Us About Alpha Group International?

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.

We can see that Alpha Group International does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Alpha Group International's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Alpha Group International is not owned by hedge funds. With a 14% stake, CEO Morgan Tillbrook is the largest shareholder. In comparison, the second and third largest shareholders hold about 9.8% and 5.5% of the 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Alpha Group International

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in Alpha Group International plc. It is very interesting to see that insiders have a meaningful UK£185m stake in this UK£923m business. 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 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Alpha Group International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Alpha Group International better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Alpha Group International .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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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.