retail investors who own 50% along with institutions invested in Corporate Travel Management Limited (ASX:CTD) saw increase in their holdings value last week
In This Article:
Key Insights
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Corporate Travel Management's significant retail 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
Every investor in Corporate Travel Management Limited (ASX:CTD) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While retail investors were the group that benefitted the most from last week’s AU$230m market cap gain, institutions too had a 34% share in those profits.
In the chart below, we zoom in on the different ownership groups of Corporate Travel Management.
View our latest analysis for Corporate Travel Management
What Does The Institutional Ownership Tell Us About Corporate Travel Management?
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.
Corporate Travel Management 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Corporate Travel Management's historic earnings and revenue below, but keep in mind there's always more to the story.
Corporate Travel Management is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Jamie Pherous with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 5.6%, of the shares outstanding, respectively.
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.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.