Stock Analysis

Institutions along with retail investors who hold considerable shares inWoodside Energy Group Ltd (ASX:WDS) come under pressure; lose 5.6% of holdings value

ASX:WDS
Source: Shutterstock

Key Insights

  • The considerable ownership by retail investors in Woodside Energy Group indicates that they collectively have a greater say in management and business strategy
  • 35% of the business is held by the top 25 shareholders
  • Insiders have bought recently

A look at the shareholders of Woodside Energy Group Ltd (ASX:WDS) can tell us which group is most powerful. With 59% stake, retail investors 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.

While institutions, who own 41% shares weren’t spared from last week’s AU$4.1b market cap drop, retail investors as a group suffered the maximum losses

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

Check out our latest analysis for Woodside Energy Group

ownership-breakdown
ASX:WDS Ownership Breakdown September 24th 2023

What Does The Institutional Ownership Tell Us About Woodside Energy Group?

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.

Woodside Energy Group 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 Woodside Energy Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ASX:WDS Earnings and Revenue Growth September 24th 2023

We note that hedge funds don't have a meaningful investment in Woodside Energy Group. BlackRock, Inc. is currently the largest shareholder, with 5.1% of shares outstanding. The second and third largest shareholders are State Street Global Advisors, Inc. and The Vanguard Group, Inc., with an equal amount of shares to their name at 5.0%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Woodside Energy Group

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. 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.

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 most recent data indicates that insiders own less than 1% of Woodside Energy Group Ltd. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own AU$25m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 59% of Woodside Energy Group. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. For example, we've discovered 2 warning signs for Woodside Energy Group (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

Valuation is complex, but we're here to simplify it.

Discover if Woodside Energy Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About ASX:WDS

Woodside Energy Group

Engages in the exploration, evaluation, development, production, and marketing of hydrocarbons in the Asia Pacific, Africa, the Americas, and the Europe.

Excellent balance sheet and fair value.