Who Are The Major Shareholders In Adelaide Brighton Limited (ASX:ABC)?

If you want to know who really controls Adelaide Brighton Limited (ASX:ABC), then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Adelaide Brighton is a pretty big company. It has a market capitalization of AU$4.11b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about ABC.

See our latest analysis for Adelaide Brighton

ASX:ABC Ownership Summary August 29th 18
ASX:ABC Ownership Summary August 29th 18

What Does The Institutional Ownership Tell Us About Adelaide Brighton?

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 Adelaide Brighton does have institutional investors; and they hold 24.0% of the stock. 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 Adelaide Brighton, (below). Of course, keep in mind that there are other factors to consider, too.

ASX:ABC Income Statement Export August 29th 18
ASX:ABC Income Statement Export August 29th 18

Hedge funds don’t have a many shares in Adelaide Brighton. 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 Adelaide Brighton

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Adelaide Brighton Limited insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it’s a big company, and the insiders own AU$31.5m 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.