In spite of recent selling, insiders still control 43% of Sabvest Capital Limited (JSE:SBP)

editorial-team@simplywallst.com (Simply Wall St)

Sun, Oct 15, 2023, 2:18 AM 4 min read

Key Insights

Significant insider control over Sabvest Capital implies vested interests in company growth
A total of 2 investors have a majority stake in the company with 50% ownership
Recent sales by insiders

To get a sense of who is truly in control of Sabvest Capital Limited (JSE:SBP), it is important to understand the ownership structure of the business. With 43% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Despite recent sales, insiders own the most shares in the company.

Let's delve deeper into each type of owner of Sabvest Capital, beginning with the chart below.

See our latest analysis for Sabvest Capital

ownership-breakdown — JSE:SBP Ownership Breakdown October 15th 2023

What Does The Institutional Ownership Tell Us About Sabvest Capital?

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.

Sabvest Capital already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Sabvest Capital's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — JSE:SBP Earnings and Revenue Growth October 15th 2023

Sabvest Capital is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Christopher Seabrooke with 41% of shares outstanding. With 9.5% and 7.4% of the shares outstanding respectively, Eric Ellerine Trust (Pty) Ltd and InsingerGilissen Asset Management N.V are the second and third largest shareholders.

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 50% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Sabvest Capital

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Sabvest Capital Limited. It has a market capitalization of just R2.7b, and insiders have R1.2b worth of shares in their own names. 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-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 9.5%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.