Adbri Limited's (ASX:ABC) largest shareholders are private companies with 42% ownership, individual investors own 42%
A look at the shareholders of Adbri Limited (ASX:ABC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 42% of the company's stockholders.
Let's delve deeper into each type of owner of Adbri, beginning with the chart below.
View our latest analysis for Adbri
What Does The Institutional Ownership Tell Us About Adbri?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Adbri does have institutional investors; and they hold a good portion of the company's stock. 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 Adbri, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Adbri. Barro Properties Pty Ltd is currently the largest shareholder, with 33% of shares outstanding. The second and third largest shareholders are Barro Group Pty Ltd. and The Vanguard Group, Inc., with an equal amount of shares to their name at 5.0%.
We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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 Adbri
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.
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.