Stock Analysis

How Much Of Anglo-Eastern Plantations Plc (LON:AEP) Do Insiders Own?

LSE:AEP
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A look at the shareholders of Anglo-Eastern Plantations Plc (LON:AEP) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of UK£256m, Anglo-Eastern Plantations is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Anglo-Eastern Plantations.

Check out our latest analysis for Anglo-Eastern Plantations

ownership-breakdown
LSE:AEP Ownership Breakdown November 30th 2020

What Does The Institutional Ownership Tell Us About Anglo-Eastern Plantations?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Anglo-Eastern Plantations. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Anglo-Eastern Plantations, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
LSE:AEP Earnings and Revenue Growth November 30th 2020

Anglo-Eastern Plantations is not owned by hedge funds. Siew Lim is currently the largest shareholder, with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. KBC Asset Management NV is the second largest shareholder owning 3.9% of common stock, and Value Square NV holds about 2.9% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Anglo-Eastern Plantations

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems that insiders own more than half the Anglo-Eastern Plantations Plc stock. This gives them a lot of power. That means they own UK£139m worth of shares in the UK£256m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 20% stake in Anglo-Eastern Plantations. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Anglo-Eastern Plantations better, we need to consider many other factors. Be aware that Anglo-Eastern Plantations is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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