In This Article:
Key Insights
-
The considerable ownership by individual investors in Baby Bunting Group indicates that they collectively have a greater say in management and business strategy
-
The top 13 shareholders own 51% of the company
A look at the shareholders of Baby Bunting Group Limited (ASX:BBN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While individual investors were the group that reaped the most benefits after last week’s 17% price gain, institutions also received a 37% cut.
Let's take a closer look to see what the different types of shareholders can tell us about Baby Bunting Group.
View our latest analysis for Baby Bunting Group
What Does The Institutional Ownership Tell Us About Baby Bunting Group?
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.
We can see that Baby Bunting Group does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Baby Bunting Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Baby Bunting Group. The company's largest shareholder is Australian Super Pty Ltd, with ownership of 13%. In comparison, the second and third largest shareholders hold about 12% and 5.1% of the stock.
A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Baby Bunting Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.