Here's What Peter Warren Automotive Holdings Limited's (ASX:PWR) Shareholder Ownership Structure Looks Like

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The big shareholder groups in Peter Warren Automotive Holdings Limited (ASX:PWR) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.

With a market capitalization of AU$484m, Peter Warren Automotive Holdings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Peter Warren Automotive Holdings.

See our latest analysis for Peter Warren Automotive Holdings

ownership-breakdown
ASX:PWR Ownership Breakdown October 26th 2021

What Does The Institutional Ownership Tell Us About Peter Warren Automotive Holdings?

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.

Peter Warren Automotive Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Peter Warren Automotive Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ASX:PWR Earnings and Revenue Growth October 26th 2021

We note that hedge funds don't have a meaningful investment in Peter Warren Automotive Holdings. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Peter Warren Automotive Holdings' case, its Senior Key Executive, Paul Warren, is the largest shareholder, holding 35% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 8.6% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.