Significantly high institutional ownership implies Raspberry Pi Holdings' stock price is sensitive to their trading actions
57% of the business is held by the top 2 shareholders
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in Raspberry Pi Holdings plc (LON:RPI) should be aware of the most powerful shareholder groups.The group holding the most number of shares in the company, around 68% to be precise, is institutions.Put another way, the group faces the maximum upside potential (or downside risk).
As a result, institutional investors were the biggest beneficiaries of last week’s 15% gain.
Let's delve deeper into each type of owner of Raspberry Pi Holdings, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Raspberry Pi Holdings?
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.
As you can see, institutional investors have a fair amount of stake in Raspberry Pi Holdings.This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes.If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Raspberry Pi Holdings' earnings history below. Of course, the future is what really matters.
LSE:RPI Earnings and Revenue Growth December 11th 2024
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power.Our data indicates that hedge funds own 6.8% of Raspberry Pi Holdings. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders.Looking at our data, we can see that the largest shareholder is Raspberry Pi Foundation, Endowment Arm with 49% of shares outstanding.SoftBank Group Corp. is the second largest shareholder owning 8.4% of common stock, and Lansdowne Partners Limited holds about 6.8% of the company stock.Additionally, the company's CEO Eben Upton directly holds 1.9% of the total shares outstanding.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.
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 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 Raspberry Pi Holdings
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Raspberry Pi Holdings plc.The insiders have a meaningful stake worth UK£19m. Most would see this as a real positive.It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
With 8.8% ownership, the general public, mostly comprising of individual investors, are a relatively smaller ownership class in Raspberry Pi Holdings.We'd generally expect to see a higher level of ownership by the general public, than this. It's not too concerning, but it is worth noting that retail investors might struggle to influence board decisions.
Public Company Ownership
We can see that public companies hold 10% of the Raspberry Pi Holdings shares on issue.This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.To that end, you should be aware of the 1 warning sign we've spotted with Raspberry Pi Holdings .
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.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.
