The considerable ownership by individual investors in Helloworld Travel indicates that they collectively have a greater say in management and business strategy
A total of 8 investors have a majority stake in the company with 51% ownership
To get a sense of who is truly in control of Helloworld Travel Limited (ASX:HLO), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 46% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, private companies make up 29% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Helloworld Travel.
What Does The Institutional Ownership Tell Us About Helloworld Travel?
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 Helloworld Travel does have institutional investors; and they hold a good portion of the company's stock. 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 Helloworld Travel, (below). Of course, keep in mind that there are other factors to consider, too.
ASX:HLO Earnings and Revenue Growth October 9th 2024
Helloworld Travel is not owned by hedge funds. Sintack Pty Ltd. is currently the company's largest shareholder with 13% of shares outstanding. With 11% and 9.0% of the shares outstanding respectively, Burnes Group Pty Ltd and Fidelity International Ltd are the second and third largest shareholders. Furthermore, CEO Andrew Burnes is the owner of 6.6% of the company's shares.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. 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 Helloworld Travel
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. 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.
It seems insiders own a significant proportion of Helloworld Travel Limited. Insiders have a AU$46m stake in this AU$306m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 46% stake in Helloworld Travel. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 29%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Helloworld Travel better, we need to consider many other factors. For instance, we've identified 1 warning sign for Helloworld Travel that you should be aware of.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
