In This Article:
Key Insights
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Supply Network's significant insider ownership suggests inherent interests in company's expansion
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50% of the business is held by the top 5 shareholders
A look at the shareholders of Supply Network Limited (ASX:SNL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
Despite recent sales, insiders own the most shares in the company.
In the chart below, we zoom in on the different ownership groups of Supply Network.
View our latest analysis for Supply Network
What Does The Institutional Ownership Tell Us About Supply Network?
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.
Supply Network 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. 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 Supply Network, (below). Of course, keep in mind that there are other factors to consider, too.
Supply Network is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Harry Forsyth with 24% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.0% and 6.5% of the stock. In addition, we found that Geoffrey David Stewart, the CEO has 1.4% of the shares allocated to their name.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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 Supply Network
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.