Evoke plc's (LON:EVOK) last week's 14% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Evoke indicates that they collectively have a greater say in management and business strategy
• 53% of the business is held by the top 6 shareholders
• Insider ownership in Evoke is 21%

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A look at the shareholders of Evoke plc (LON:EVOK) can tell us which group is most powerful. The group holding the most number of shares in the company, around 44% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 14% decline in share price, retail investors suffered the most losses.

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

See our latest analysis for Evoke

What Does The Institutional Ownership Tell Us About Evoke?

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.

We can see that Evoke 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 Evoke's earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 21% of Evoke. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Dalia Shaked is currently the company's largest shareholder with 19% of shares outstanding. The second and third largest shareholders are Artemis Investment Management LLP and Parvus Asset Management Jersey Limited, with an equal amount of shares to their name at 9.9%. In addition, we found that Per Widerstrom, the CEO has 0.7% of the shares allocated to their name.

We did some more digging and found that 6 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Evoke

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Evoke plc. Insiders own UK£28m worth of shares in the UK£137m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. 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. For instance, we've identified 2 warning signs for Evoke (1 makes us a bit uncomfortable) that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.