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A look at the shareholders of Pact Group Holdings Ltd (ASX:PGH) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
Pact Group Holdings is a smaller company with a market capitalization of AU$781m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about PGH.
See our latest analysis for Pact Group Holdings
What Does The Institutional Ownership Tell Us About Pact Group Holdings?
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.
Pact Group Holdings already has institutions on the share registry. Indeed, they own 28% of the company. 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. 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 Pact Group Holdings's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Pact Group Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Pact Group Holdings
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Pact Group Holdings Ltd. As individuals, the insiders collectively own AU$42m worth of the AU$781m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.