Supreme Plc (LON:SUP) insiders have significant skin in the game with 33% ownership

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

Sun, Feb 23, 2025, 10:49 PM 4 min read

To get a sense of who is truly in control of Supreme Plc (LON:SUP), it is important to understand the ownership structure of the business. With 33% 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).

So it follows, every decision made by insiders of Supreme regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Supreme.

See our latest analysis for Supreme

ownership-breakdown — AIM:SUP Ownership Breakdown February 24th 2025

What Does The Institutional Ownership Tell Us About Supreme?

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.

We can see that Supreme does have institutional investors; and they hold a good portion of the company's stock. 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 Supreme's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — AIM:SUP Earnings and Revenue Growth February 24th 2025

Hedge funds don't have many shares in Supreme. Looking at our data, we can see that the largest shareholder is the CEO Sandeep Chadha with 33% of shares outstanding. Supreme 88 Ltd is the second largest shareholder owning 24% of common stock, and Moneta Asset Management holds about 7.0% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Supreme

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

It seems insiders own a significant proportion of Supreme Plc. Insiders own UK£64m worth of shares in the UK£197m company. 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, who are usually individual investors, hold a 14% stake in Supreme. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 24%, of the Supreme stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Supreme better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Supreme (including 1 which shouldn't be ignored) .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.