What Is The Ownership Structure Like For Fuller, Smith & Turner P.L.C. (LON:FSTA)?

By
Simply Wall St
Published
April 12, 2021
LSE:FSTA
Source: Shutterstock

If you want to know who really controls Fuller, Smith & Turner P.L.C. (LON:FSTA), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Fuller Smith & Turner is a smaller company with a market capitalization of UK£527m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Fuller Smith & Turner.

View our latest analysis for Fuller Smith & Turner

ownership-breakdown
LSE:FSTA Ownership Breakdown April 13th 2021

What Does The Institutional Ownership Tell Us About Fuller Smith & Turner?

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 Fuller Smith & Turner does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Fuller Smith & Turner's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
LSE:FSTA Earnings and Revenue Growth April 13th 2021

We note that hedge funds don't have a meaningful investment in Fuller Smith & Turner. Our data shows that BlackRock, Inc. is the largest shareholder with 7.9% of shares outstanding. With 3.1% and 2.6% of the shares outstanding respectively, Columbia Management Investment Advisers, LLC and James Sharp & Co., Asset Management Arm are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Fuller Smith & Turner

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.

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.

We can see that insiders own shares in Fuller, Smith & Turner P.L.C.. As individuals, the insiders collectively own UK£21m worth of the UK£527m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 52% of Fuller Smith & Turner shares. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. To that end, you should be aware of the 1 warning sign we've spotted with Fuller Smith & Turner .

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. 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.
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