Owning 45% in Tasmea Limited (ASX:TEA) means that insiders are heavily invested in the company's future

In This Article:

Key Insights

  • Tasmea's significant insider ownership suggests inherent interests in company's expansion

  • A total of 2 investors have a majority stake in the company with 60% ownership

  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Tasmea Limited (ASX:TEA) should be aware of the most powerful shareholder groups. With 45% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Tasmea have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

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

View our latest analysis for Tasmea

ownership-breakdown
ASX:TEA Ownership Breakdown August 19th 2024

What Does The Lack Of Institutional Ownership Tell Us About Tasmea?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Tasmea, for yourself, below.

earnings-and-revenue-growth
ASX:TEA Earnings and Revenue Growth August 19th 2024

Tasmea is not owned by hedge funds. The company's CEO Stephen Young is the largest shareholder with 42% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 1.9% by the third-largest shareholder.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Tasmea

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.