Stock Analysis

What Kind Of Shareholders Own Bapcor Limited (ASX:BAP)?

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ASX:BAP
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A look at the shareholders of Bapcor Limited (ASX:BAP) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Bapcor isn't enormous, but it's not particularly small either. It has a market capitalization of AU$2.8b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Bapcor.

Check out our latest analysis for Bapcor

ownership-breakdown
ASX:BAP Ownership Breakdown February 9th 2021

What Does The Institutional Ownership Tell Us About Bapcor?

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.

As you can see, institutional investors have a fair amount of stake in Bapcor. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Bapcor's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX:BAP Earnings and Revenue Growth February 9th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Bapcor is not owned by hedge funds. The company's largest shareholder is Challenger Limited, with ownership of 5.4%. The second and third largest shareholders are Alphinity Investment Management Pty Limited and AustralianSuper Pty. Ltd., with an equal amount of shares to their name at 5.0%.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Bapcor

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.

Our data suggests that insiders own under 1% of Bapcor Limited in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. Keep in mind that it's a big company, and the insiders own AU$25m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public holds a 42% stake in Bapcor. 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:

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 - Bapcor has 2 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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