Great week for Web Travel Group Limited (ASX:WEB) institutional investors after losing 23% over the previous year

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editorial-team@simplywallst.com (Simply Wall St)

Thu, Jan 23, 2025, 2:23 PM 4 min read

Significantly high institutional ownership implies Web Travel Group's stock price is sensitive to their trading actions
A total of 14 investors have a majority stake in the company with 50% ownership
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Web Travel Group Limited (ASX:WEB) can tell us which group is most powerful. With 50% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week's AU$83m market cap gain would probably be appreciated by institutional investors, especially after a year of 23% losses.

In the chart below, we zoom in on the different ownership groups of Web Travel Group.

View our latest analysis for Web Travel Group

ownership-breakdown — ASX:WEB Ownership Breakdown January 23rd 2025

What Does The Institutional Ownership Tell Us About Web Travel Group?

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.

We can see that Web Travel Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Web Travel Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — ASX:WEB Earnings and Revenue Growth January 23rd 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Web Travel Group. First Sentier Investors (Australia) IM Ltd is currently the company's largest shareholder with 8.6% of shares outstanding. With 6.3% and 5.2% of the shares outstanding respectively, State Street Global Advisors, Inc. and UBS Asset Management AG are the second and third largest shareholders. In addition, we found that John Guscic, the CEO has 2.3% of the shares allocated to their name.

After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Web Travel Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in Web Travel Group Limited. This is a big company, so it is good to see this level of alignment. Insiders own AU$79m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Web Travel Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.