Institutions profited after Catapult Group International Ltd's (ASX:CAT) market cap rose AU$75m last week but individual investors profited the most

Key Insights

• The considerable ownership by individual investors in Catapult Group International indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 14 shareholders
• Insiders have sold recently

To get a sense of who is truly in control of Catapult Group International Ltd (ASX:CAT), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched AU$554m last week, while institutions who own 32% also benefitted.

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

View our latest analysis for Catapult Group International

What Does The Institutional Ownership Tell Us About Catapult Group International?

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 Catapult Group International. 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 Catapult Group International's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Catapult Group International. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Catapult Group International's case, its Top Key Executive, Igor van de Griendt, is the largest shareholder, holding 8.0% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.6% and 6.7%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Shaun Holthouse is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top 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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Catapult Group International

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.

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 most recent data indicates that insiders own a reasonable proportion of Catapult Group International Ltd. Insiders own AU$103m worth of shares in the AU$554m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Catapult Group International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 3.0%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Catapult Group International better, we need to consider many other factors. Take risks for example - Catapult Group International has 2 warning signs we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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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.