The big shareholder groups in The Fulham Shore PLC (LON:FUL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.
Fulham Shore is a smaller company with a market capitalization of UK£92m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Fulham Shore.
Check out our latest analysis for Fulham Shore
What Does The Institutional Ownership Tell Us About Fulham Shore?
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.
Fulham Shore already has institutions on the share registry. Indeed, they own a respectable stake in 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. 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 Fulham Shore, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Fulham Shore. With a 18% stake, CEO Nabil Ayad Mankarious is the largest shareholder. With 13% and 13% of the shares outstanding respectively, Sami Wasif and David Page are the second and third largest shareholders. Interestingly, the third-largest shareholder, David Page is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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 is some analyst coverage of the stock, but it could still become more well known, with time.