- Diversified Financial
Institutional investors may overlook Omni Bridgeway Limited's (ASX:OBL) recent AU$98m market cap drop as long-term gains remain positive
A look at the shareholders of Omni Bridgeway Limited (ASX:OBL) can tell us which group is most powerful. With 54% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Losing money on investments is something no shareholder enjoys, least of all institutional investors who saw their holdings value drop by 8.7% last week. However, the 12% one-year return to shareholders may have helped lessen their pain. They should, however, be mindful of further losses in the future.
Let's delve deeper into each type of owner of Omni Bridgeway, beginning with the chart below.
View our latest analysis for Omni Bridgeway
What Does The Institutional Ownership Tell Us About Omni Bridgeway?
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.
Omni Bridgeway already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Omni Bridgeway's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Omni Bridgeway is not owned by hedge funds. Our data shows that Greencape Capital Pty Ltd is the largest shareholder with 8.7% of shares outstanding. With 8.2% and 6.2% of the shares outstanding respectively, Perpetual Limited and The Retail Employees Superannuation Trust are the second and third largest shareholders.
After doing some more digging, we found that the top 13 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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 Omni Bridgeway
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.
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. In their own names, insiders own AU$43m worth of stock in the AU$1.0b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Omni Bridgeway. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
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 1 warning sign for Omni Bridgeway that you should be aware of.
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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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.
Omni Bridgeway Limited engages in investing in litigation and dispute resolution and enforcement matters in Australia, the United States, Canada, Asia, Europe, the Middle East, and Africa.
Flawless balance sheet with high growth potential.