What Type Of Shareholders Make Up Persimmon Plc's (LON:PSN) Share Registry?

By
Simply Wall St
Published
April 13, 2022
LSE:PSN
Source: Shutterstock

The big shareholder groups in Persimmon Plc (LON:PSN) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Persimmon is a pretty big company. It has a market capitalization of UK£7.0b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Persimmon.

See our latest analysis for Persimmon

ownership-breakdown
LSE:PSN Ownership Breakdown April 13th 2022

What Does The Institutional Ownership Tell Us About Persimmon?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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

earnings-and-revenue-growth
LSE:PSN Earnings and Revenue Growth April 13th 2022

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Persimmon is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 8.1%. For context, the second largest shareholder holds about 4.1% of the shares outstanding, followed by an ownership of 3.8% by the third-largest shareholder.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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 Persimmon

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 less than 1% of Persimmon Plc. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own UK£839k of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in Persimmon. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Persimmon has 3 warning signs (and 2 which are a bit unpleasant) we think 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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