Trajan Group Holdings Limited's (ASX:TRJ) CEO Stephen Tomisich is the most upbeat insider, and their holdings increased by 16% last week

By
Simply Wall St
Published
December 17, 2021
ASX:TRJ
Source: Shutterstock

To get a sense of who is truly in control of Trajan Group Holdings Limited (ASX:TRJ), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit AU$507m market cap following a 16% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Trajan Group Holdings.

See our latest analysis for Trajan Group Holdings

ownership-breakdown
ASX:TRJ Ownership Breakdown December 17th 2021

What Does The Institutional Ownership Tell Us About Trajan Group Holdings?

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.

We can see that Trajan Group Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Trajan Group Holdings' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX:TRJ Earnings and Revenue Growth December 17th 2021

Hedge funds don't have many shares in Trajan Group Holdings. With a 59% stake, CEO Stephen Tomisich is the largest shareholder. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Meanwhile, the second and third largest shareholders, hold 6.4% and 1.1%, of the shares outstanding, respectively.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Trajan Group Holdings

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.

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.

It seems that insiders own more than half the Trajan Group Holdings Limited stock. This gives them a lot of power. That means they own AU$309m worth of shares in the AU$507m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Trajan Group Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Be aware that Trajan Group Holdings is showing 3 warning signs in our investment analysis , you should know about...

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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