Both individual investors who control a good portion of Centuria Capital Group (ASX:CNI) along with institutions must be dismayed after last week's 5.9% decrease

By
Simply Wall St
Published
March 08, 2022
ASX:CNI
Source: Shutterstock

Every investor in Centuria Capital Group (ASX:CNI) should be aware of the most powerful shareholder groups. With 41% stake, individual 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 the holdings of individual investors took a hit after last week’s 5.9% price drop, institutions with their 33% holdings also suffered.

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

See our latest analysis for Centuria Capital Group

ownership-breakdown
ASX:CNI Ownership Breakdown March 8th 2022

What Does The Institutional Ownership Tell Us About Centuria Capital Group?

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.

As you can see, institutional investors have a fair amount of stake in Centuria Capital Group. 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. 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 Centuria Capital Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX:CNI Earnings and Revenue Growth March 8th 2022

Centuria Capital Group is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 8.1% of shares outstanding. With 6.4% and 5.5% of the shares outstanding respectively, HWM (NZ) Holdings Limited and BlackRock, Inc. are the second and third largest shareholders.

After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Centuria Capital Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Centuria Capital Group. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around AU$144m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Centuria Capital Group. 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.

Private Company Ownership

Our data indicates that Private Companies hold 15%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 4.3% of the Centuria Capital Group shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Take risks for example - Centuria Capital Group has 3 warning signs we think 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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