In This Article:
Key Insights
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The considerable ownership by retail investors in Solvar indicates that they collectively have a greater say in management and business strategy
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A total of 25 investors have a majority stake in the company with 45% ownership
To get a sense of who is truly in control of Solvar Limited (ASX:SVR), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 24% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Solvar, beginning with the chart below.
Check out our latest analysis for Solvar
What Does The Institutional Ownership Tell Us About Solvar?
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.
Solvar already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Solvar, (below). Of course, keep in mind that there are other factors to consider, too.
Solvar is not owned by hedge funds. Our data shows that TIGA Trading Pty Ltd, Asset Management Arm is the largest shareholder with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.2% and 4.6% of the stock.
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.
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 Solvar
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.