Institutions profited after Oakley Capital Investments Limited's (LON:OCI) market cap rose UK£44m last week but individual investors profited the most

Key Insights

• Significant control over Oakley Capital Investments by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 44% of the company
• Insiders have been buying lately

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Every investor in Oakley Capital Investments Limited (LON:OCI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.7% increase in the stock price last week, individual investors profited the most, but institutions who own 31% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Oakley Capital Investments, beginning with the chart below.

View our latest analysis for Oakley Capital Investments

What Does The Institutional Ownership Tell Us About Oakley Capital Investments?

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 Oakley Capital Investments does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Oakley Capital Investments' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Oakley Capital Investments. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Oakley Capital Investments' case, its Top Key Executive, Peter Adam Dubens, is the largest shareholder, holding 12% of shares outstanding. Asset Value Investors Limited is the second largest shareholder owning 10% of common stock, and RBC Trust Company (International) Limited holds about 4.7% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Oakley Capital Investments

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

It seems insiders own a significant proportion of Oakley Capital Investments Limited. It has a market capitalization of just UK£982m, and insiders have UK£127m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Oakley Capital Investments shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Oakley Capital Investments that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.