Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) most popular amongst individual investors who own 53% of the shares, institutions hold 47%

Key Insights

• The considerable ownership by individual investors in Fisher & Paykel Healthcare indicates that they collectively have a greater say in management and business strategy
• 43% of the business is held by the top 25 shareholders
• 47% of Fisher & Paykel Healthcare is held by Institutions

A look at the shareholders of Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 47% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

In the chart below, we zoom in on the different ownership groups of Fisher & Paykel Healthcare.

See our latest analysis for Fisher & Paykel Healthcare

What Does The Institutional Ownership Tell Us About Fisher & Paykel Healthcare?

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.

Fisher & Paykel Healthcare already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Fisher & Paykel Healthcare's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Fisher & Paykel Healthcare. Our data shows that JPMorgan Chase & Co, Private Banking and Investment Banking Investments is the largest shareholder with 6.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 6.2% of the 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Fisher & Paykel Healthcare

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Fisher & Paykel Healthcare Corporation Limited in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own NZ$78m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Fisher & Paykel Healthcare. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Fisher & Paykel Healthcare .

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. 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.