What Kind Of Investor Owns Most Of Greene King plc (LON:GNK)?

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A look at the shareholders of Greene King plc (LON:GNK) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Greene King isn't enormous, but it's not particularly small either. It has a market capitalization of UK£1.8b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about GNK.

View our latest analysis for Greene King

LSE:GNK Ownership Summary, June 24th 2019
LSE:GNK Ownership Summary, June 24th 2019

What Does The Institutional Ownership Tell Us About Greene King?

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.

Greene King already has institutions on the share registry. Indeed, they own 89% of the company. 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 Greene King's earnings history, below. Of course, the future is what really matters.

LSE:GNK Income Statement, June 24th 2019
LSE:GNK Income Statement, June 24th 2019

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Greene King is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Greene King

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of Greene King plc. Keep in mind that it's a big company, and the insiders own UK£1.2m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.