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Every investor in boohoo group plc (LON:BOO) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 45% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 31% came under pressure after market cap dropped to UK£600m last week,individual investors took the most losses.
In the chart below, we zoom in on the different ownership groups of boohoo group.
Check out our latest analysis for boohoo group
What Does The Institutional Ownership Tell Us About boohoo 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.
As you can see, institutional investors have a fair amount of stake in boohoo group. 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. 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 boohoo 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 boohoo group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In boohoo group's case, its Top Key Executive, Mahmud Kamani, is the largest shareholder, holding 16% of shares outstanding. With 5.1% and 5.0% of the shares outstanding respectively, T. Rowe Price Group, Inc. and Invesco Ltd. are the second and third largest shareholders.
We did some more digging and found that 10 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of boohoo group
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.