Institutional investors have a lot riding on Stockland (ASX:SGP) with 51% ownership

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editorial-team@simplywallst.com (Simply Wall St)

Mon, Jan 20, 2025, 5:48 PM 4 min read

To get a sense of who is truly in control of Stockland (ASX:SGP), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 7.2% last week. One-year return to shareholders is currently 23% and last week’s gain was the icing on the cake.

Let's take a closer look to see what the different types of shareholders can tell us about Stockland.

View our latest analysis for Stockland

ownership-breakdown — ASX:SGP Ownership Breakdown January 21st 2025

What Does The Institutional Ownership Tell Us About Stockland?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Stockland. 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. 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 Stockland's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — ASX:SGP Earnings and Revenue Growth January 21st 2025

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Stockland is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 9.7% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 9.7% of common stock, and State Street Global Advisors, Inc. holds about 9.2% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Stockland

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Stockland. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own AU$21m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Stockland better, we need to consider many other factors. For example, we've discovered 4 warning signs for Stockland (1 is a bit concerning!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.