Institutional investors must be pleased after a 15% gain last week that adds to Eagle Eye Solutions Group plc's (LON:EYE) one-year returns

Key Insights

• Institutions' substantial holdings in Eagle Eye Solutions Group implies that they have significant influence over the company's share price
• A total of 7 investors have a majority stake in the company with 54% ownership
• Insider ownership in Eagle Eye Solutions Group is 35%

A look at the shareholders of Eagle Eye Solutions Group plc (LON:EYE) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And things are looking up for institutional investors after the company gained UK£22m in market cap last week. One-year return to shareholders is currently 7.1% and last week’s gain was the icing on the cake.

In the chart below, we zoom in on the different ownership groups of Eagle Eye Solutions Group.

See our latest analysis for Eagle Eye Solutions Group

What Does The Institutional Ownership Tell Us About Eagle Eye Solutions Group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Eagle Eye Solutions Group. 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. 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 Eagle Eye Solutions Group, (below). Of course, keep in mind that there are other factors to consider, too.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Eagle Eye Solutions Group. The company's largest shareholder is Canaccord Genuity Asset Management Limited, with ownership of 17%. Liontrust Asset Management PLC is the second largest shareholder owning 9.9% of common stock, and Terence Leahy holds about 8.4% of the company stock. Terence Leahy, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Timothy John Mason, the CEO has 1.1% of the shares allocated to their name.

We did some more digging and found that 7 of the top shareholders account for roughly 54% 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Eagle Eye Solutions Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Eagle Eye Solutions Group plc. Insiders have a UK£58m stake in this UK£167m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 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 - Eagle Eye Solutions Group has 2 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.