Key Insights
-
Significant control over Solvar by retail investors implies that the general public has more power to influence management and governance-related decisions
-
A total of 25 investors have a majority stake in the company with 47% ownership
To get a sense of who is truly in control of Solvar Limited (ASX:SVR), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 29% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Solvar.
See our latest analysis for Solvar
What Does The Institutional Ownership Tell Us About Solvar?
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.
We can see that Solvar does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Solvar's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Solvar. Our data shows that TIGA Trading Pty Ltd, Asset Management Arm is the largest shareholder with 10.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.3% and 4.7% of the stock. In addition, we found that Scott Baldwin, the CEO has 1.0% of the shares allocated to their name.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Solvar
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.