In This Article:
Key Insights
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FW Thorpe's significant insider ownership suggests inherent interests in company's expansion
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54% of the business is held by the top 4 shareholders
If you want to know who really controls FW Thorpe Plc (LON:TFW), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 51% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
So it follows, every decision made by insiders of FW Thorpe regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of FW Thorpe.
Check out our latest analysis for FW Thorpe
What Does The Institutional Ownership Tell Us About FW Thorpe?
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.
As you can see, institutional investors have a fair amount of stake in FW Thorpe. 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. 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 FW Thorpe's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in FW Thorpe. The company's largest shareholder is Andrew Thorpe, with ownership of 22%. Meanwhile, the second and third largest shareholders, hold 21% and 5.7%, of the shares outstanding, respectively.
On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of FW Thorpe
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.