Stock Analysis

What You Need To Know About Precinct Properties New Zealand Limited's (NZSE:PCT) Investor Composition

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NZSE:PCT
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A look at the shareholders of Precinct Properties New Zealand Limited (NZSE:PCT) 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. We also tend to see lower insider ownership in companies that were previously publicly owned.

Precinct Properties New Zealand isn't enormous, but it's not particularly small either. It has a market capitalization of NZ$2.2b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Precinct Properties New Zealand.

Check out our latest analysis for Precinct Properties New Zealand

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NZSE:PCT Ownership Breakdown December 28th 2020

What Does The Institutional Ownership Tell Us About Precinct Properties New Zealand?

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.

Precinct Properties New Zealand already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Precinct Properties New Zealand's earnings history below. Of course, the future is what really matters.

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NZSE:PCT Earnings and Revenue Growth December 28th 2020

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 Precinct Properties New Zealand. Looking at our data, we can see that the largest shareholder is AMP Capital Investors Limited with 20% of shares outstanding. With 15% and 5.0% of the shares outstanding respectively, ANZ New Zealand Investments Limited and Accident Compensation Corporation, Asset Management Arm are the second and third largest shareholders.

We did some more digging and found that 9 of the top shareholders account for roughly 51% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Precinct Properties New Zealand

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that Precinct Properties New Zealand Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own NZ$6.6m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 43% stake in Precinct Properties New Zealand. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Precinct Properties New Zealand is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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