What Kind Of Shareholders Hold The Majority In Omni Bridgeway Limited's (ASX:OBL) Shares?

By
Simply Wall St
Published
November 08, 2021
ASX:OBL
Source: Shutterstock

The big shareholder groups in Omni Bridgeway Limited (ASX:OBL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Omni Bridgeway is a smaller company with a market capitalization of AU$750m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Omni Bridgeway.

Check out our latest analysis for Omni Bridgeway

ownership-breakdown
ASX:OBL Ownership Breakdown November 9th 2021

What Does The Institutional Ownership Tell Us About Omni Bridgeway?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Omni Bridgeway already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Omni Bridgeway, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ASX:OBL Earnings and Revenue Growth November 9th 2021

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Omni Bridgeway. Greencape Capital Pty Ltd is currently the largest shareholder, with 8.6% of shares outstanding. The Retail Employees Superannuation Trust is the second largest shareholder owning 6.5% of common stock, and Amitell Capital Pte. Ltd. holds about 6.0% of the company stock.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Omni Bridgeway

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Omni Bridgeway Limited. It has a market capitalization of just AU$750m, and insiders have AU$29m worth of shares, in their own names. 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 39% stake in Omni Bridgeway. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Omni Bridgeway (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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