SGH Limited (ASX:SGH) stock most popular amongst private companies who own 52%, while individual investors hold 30%
In This Article:
Key Insights
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SGH's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
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51% of the business is held by the top 2 shareholders
A look at the shareholders of SGH Limited (ASX:SGH) can tell us which group is most powerful. The group holding the most number of shares in the company, around 52% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 30% of the company's stockholders.
In the chart below, we zoom in on the different ownership groups of SGH.
View our latest analysis for SGH
What Does The Institutional Ownership Tell Us About SGH?
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 SGH. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 SGH, (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 SGH. Looking at our data, we can see that the largest shareholder is North Aston Pty Limited with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 5.0%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SGH
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.