In This Article:
Key Insights
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Institutions' substantial holdings in Credit Corp Group implies that they have significant influence over the company's share price
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A total of 13 investors have a majority stake in the company with 50% ownership
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
A look at the shareholders of Credit Corp Group Limited (ASX:CCP) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Credit Corp Group.
See our latest analysis for Credit Corp Group
What Does The Institutional Ownership Tell Us About Credit Corp Group?
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.
We can see that Credit Corp 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. 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 Credit Corp Group's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Credit Corp Group. Looking at our data, we can see that the largest shareholder is Bennelong Funds Management Group Pty Ltd with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.0% and 5.2% of the stock.
A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.