HUB24 Limited's (ASX:HUB) largest shareholders are retail investors with 49% ownership, institutions own 38%
In This Article:
Key Insights
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The considerable ownership by retail investors in HUB24 indicates that they collectively have a greater say in management and business strategy
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48% of the business is held by the top 25 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 retail investors with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 38% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of HUB24.
Check out our latest analysis for HUB24
What Does The Institutional Ownership Tell Us About HUB24?
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.
We can see that HUB24 does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see HUB24's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in HUB24. Looking at our data, we can see that the largest shareholder is Hyperion Asset Management Limited with 9.1% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 5.0% of the stock. Furthermore, CEO Andrew Alcock is the owner of 1.3% of the company's shares.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.