In This Article:
Key Insights
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Significant control over Endeavour Group by individual investors implies that the general public has more power to influence management and governance-related decisions
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42% of the business is held by the top 25 shareholders
A look at the shareholders of Endeavour Group Limited (ASX:EDV) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While institutions, who own 20% shares weren’t spared from last week’s AU$340m market cap drop, individual investors as a group suffered the maximum losses
Let's take a closer look to see what the different types of shareholders can tell us about Endeavour Group.
See our latest analysis for Endeavour Group
What Does The Institutional Ownership Tell Us About Endeavour Group?
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.
Endeavour Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Endeavour Group, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Endeavour Group. The company's largest shareholder is Bruce Mathieson, with ownership of 15%. With 9.1% and 7.6% of the shares outstanding respectively, Woolworths Group Limited and Australian Super Pty Ltd are the second and third largest shareholders.
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.
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 Endeavour Group
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.