In This Article:
Key Insights
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Significantly high institutional ownership implies HUB24's stock price is sensitive to their trading actions
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54% of the business is held by the top 6 shareholders
A look at the shareholders of HUB24 Limited (ASX:HUB) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's take a closer look to see what the different types of shareholders can tell us about HUB24.
View our latest analysis for HUB24
What Does The Institutional Ownership Tell Us About HUB24?
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.
As you can see, institutional investors have a fair amount of stake in HUB24. 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 HUB24's earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in HUB24. Pinnacle Fund Services Limited is currently the largest shareholder, with 22% of shares outstanding. With 11% and 5.4% of the shares outstanding respectively, Hyperion Asset Management Limited and State Street Global Advisors, Inc. are the second and third largest shareholders. In addition, we found that Andrew Alcock, the CEO has 1.1% of the shares allocated to their name.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.