Recent uptick might appease Omni Bridgeway Limited (ASX:OBL) institutional owners after losing 10% over the past year

Published
June 28, 2022
ASX:OBL
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Every investor in Omni Bridgeway Limited (ASX:OBL) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Last week's AU$91m market cap gain would probably be appreciated by institutional investors, especially after a year of 10% losses.

Let's take a closer look to see what the different types of shareholders can tell us about Omni Bridgeway.

See our latest analysis for Omni Bridgeway

ownership-breakdown
ASX:OBL Ownership Breakdown June 28th 2022

What Does The Institutional Ownership Tell Us About Omni Bridgeway?

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.

Omni Bridgeway already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 June 28th 2022

Hedge funds don't have many shares in Omni Bridgeway. The company's largest shareholder is Greencape Capital Pty Ltd, with ownership of 8.5%. The Retail Employees Superannuation Trust is the second largest shareholder owning 6.4% of common stock, and Amitell Capital Pte. Ltd. holds about 5.9% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 14 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Omni Bridgeway

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own some shares in Omni Bridgeway Limited. It has a market capitalization of just AU$884m, and insiders have AU$36m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Omni Bridgeway better, we need to consider many other factors. For instance, we've identified 2 warning signs for Omni Bridgeway that you should be aware of.

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.

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About ASX:OBL

Omni Bridgeway

Omni Bridgeway Limited engages in investing in litigation and dispute resolution matters in Australia, the United States, Canada, Asia, Europe, the Middle East, and Africa.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth0
Past Performance2
Financial Health4
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Adequate balance sheet with questionable track record.