Here's What Growthpoint Properties Australia's (ASX:GOZ) Shareholder Ownership Structure Looks Like

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Simply Wall St

Tue, May 3, 2022, 10:29 PM 4 min read

The big shareholder groups in Growthpoint Properties Australia (ASX:GOZ) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

Growthpoint Properties Australia isn't enormous, but it's not particularly small either. It has a market capitalization of AU$3.2b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Growthpoint Properties Australia.

See our latest analysis for Growthpoint Properties Australia

ownership-breakdown — ASX:GOZ Ownership Breakdown May 4th 2022

What Does The Institutional Ownership Tell Us About Growthpoint Properties Australia?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Growthpoint Properties Australia 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. 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 Growthpoint Properties Australia's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — ASX:GOZ Earnings and Revenue Growth May 4th 2022

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Growthpoint Properties Australia is not owned by hedge funds. The company's largest shareholder is Growthpoint Properties Limited, with ownership of 62%. This implies that they have majority interest control of the future of the company. Mitsubishi UFJ Kokusai Asset Management Co., Ltd. is the second largest shareholder owning 4.7% of common stock, and The Vanguard Group, Inc. holds about 3.6% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Growthpoint Properties Australia

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that Growthpoint Properties Australia insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own AU$28m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Growthpoint Properties Australia. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 5 warning signs for Growthpoint Properties Australia (2 are concerning!) that you should be aware of before investing here.

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.