Stock Analysis

Here's What Oxford Metrics plc's (LON:OMG) Shareholder Ownership Structure Looks Like

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AIM:OMG
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If you want to know who really controls Oxford Metrics plc (LON:OMG), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Oxford Metrics is a smaller company with a market capitalization of UK£115m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Oxford Metrics.

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AIM:OMG Ownership Breakdown March 2nd 2021

What Does The Institutional Ownership Tell Us About Oxford Metrics?

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 Oxford Metrics. 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 Oxford Metrics, (below). Of course, keep in mind that there are other factors to consider, too.

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AIM:OMG Earnings and Revenue Growth March 2nd 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Oxford Metrics. Our data shows that Charles Stanley & Co. Ltd, Asset Management Arm is the largest shareholder with 12% of shares outstanding. BennBridge Ltd is the second largest shareholder owning 6.7% of common stock, and Hargreave Hale Limited, Asset Management Arm holds about 6.5% of the company stock. Additionally, the company's CEO Nicholas Bolton directly holds 1.9% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Oxford Metrics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can see that insiders own shares in Oxford Metrics plc. It has a market capitalization of just UK£115m, and insiders have UK£9.4m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 12% stake in Oxford Metrics. 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 Oxford Metrics better, we need to consider many other factors. Take risks for example - Oxford Metrics has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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