Stock Analysis

With 55% ownership, Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) boasts of strong institutional backing

NZSE:FPH
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Key Insights

  • Given the large stake in the stock by institutions, Fisher & Paykel Healthcare's stock price might be vulnerable to their trading decisions
  • A total of 23 investors have a majority stake in the company with 50% ownership
  • Insiders have bought recently

If you want to know who really controls Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about Fisher & Paykel Healthcare.

View our latest analysis for Fisher & Paykel Healthcare

ownership-breakdown
NZSE:FPH Ownership Breakdown April 18th 2024

What Does The Institutional Ownership Tell Us About Fisher & Paykel Healthcare?

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 Fisher & Paykel Healthcare. 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. 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 Fisher & Paykel Healthcare's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NZSE:FPH Earnings and Revenue Growth April 18th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Fisher & Paykel Healthcare is not owned by hedge funds. First Sentier Investors (Australia) IM Ltd is currently the largest shareholder, with 7.4% of shares outstanding. With 6.8% and 6.5% of the shares outstanding respectively, JPMorgan Chase & Co, Private Banking and Investment Banking Investments and BlackRock, Inc. are the second and third largest shareholders.

After doing some more digging, we found that the top 23 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Fisher & Paykel Healthcare

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that Fisher & Paykel Healthcare Corporation Limited insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own NZ$56m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 45% stake in Fisher & Paykel Healthcare. 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 Fisher & Paykel Healthcare better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Fisher & Paykel Healthcare is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.