In This Article:
Key Insights
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Significantly high institutional ownership implies Summerset Group Holdings' stock price is sensitive to their trading actions
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50% of the business is held by the top 22 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Summerset Group Holdings Limited (NZSE:SUM), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 51% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week’s 3.4% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 39% and last week's gain would have been more than welcomed.
Let's delve deeper into each type of owner of Summerset Group Holdings, beginning with the chart below.
View our latest analysis for Summerset Group Holdings
What Does The Institutional Ownership Tell Us About Summerset Group Holdings?
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 Summerset Group Holdings. 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 Summerset Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Summerset Group Holdings. BlackRock, Inc. is currently the company's largest shareholder with 6.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.5% and 5.7% of the stock.
After doing some more digging, we found that the top 22 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.