In This Article:
Key Insights
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Petrofac's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 25 investors have a majority stake in the company with 49% ownership
To get a sense of who is truly in control of Petrofac Limited (LON:PFC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 11% increase in the stock price last week, individual investors profited the most, but institutions who own 23% stock also stood to gain from the increase.
In the chart below, we zoom in on the different ownership groups of Petrofac.
Check out our latest analysis for Petrofac
What Does The Institutional Ownership Tell Us About Petrofac?
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.
Petrofac already has institutions on the share registry. Indeed, they own a respectable stake in 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. 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 Petrofac, (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 Petrofac. Ayman Asfari is currently the largest shareholder, with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 9.4% of the stock.
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 Petrofac
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.