Gerry Sakkas PlaySide Studios Limited's (ASX:PLY) CEO is the most bullish insider, and their stock value gained 15%last week

Key Insights

• Insiders appear to have a vested interest in PlaySide Studios' growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 54% ownership
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls PlaySide Studios Limited (ASX:PLY), then you'll have to look at the makeup of its share registry. With 53% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 15% gain.

Let's delve deeper into each type of owner of PlaySide Studios, beginning with the chart below.

Check out our latest analysis for PlaySide Studios

What Does The Institutional Ownership Tell Us About PlaySide Studios?

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.

PlaySide Studios 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 PlaySide Studios, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in PlaySide Studios. With a 16% stake, CEO Gerry Sakkas is the largest shareholder. The second and third largest shareholders are Mark Goulopoulos and Aaron Pasias, with an equal amount of shares to their name at 16%. Interestingly, the third-largest shareholder, Aaron Pasias is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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 PlaySide Studios

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 information suggests that insiders own more than half of PlaySide Studios Limited. This gives them effective control of the company. Given it has a market cap of AU$270m, that means they have AU$144m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. 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 PlaySide Studios better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for PlaySide Studios you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.