In This Article:
Key Insights
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Significant control over Vinyl Group by private companies implies that the general public has more power to influence management and governance-related decisions
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The top 4 shareholders own 52% of the company
If you want to know who really controls Vinyl Group Ltd (ASX:VNL), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 56% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, private companies collectively scored the highest last week as the company hit AU$162m market cap following a 52% gain in the stock.
In the chart below, we zoom in on the different ownership groups of Vinyl Group.
Check out our latest analysis for Vinyl Group
What Does The Lack Of Institutional Ownership Tell Us About Vinyl Group?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Vinyl Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in Vinyl Group. Looking at our data, we can see that the largest shareholder is Realwise Group Holdings Pty Ltd with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 16% and 2.5% of the stock. In addition, we found that Joshua Simons, the CEO has 2.4% of the shares allocated to their name.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Vinyl Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.