Key Insights

• REA Group's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public

• The largest shareholder of the company is News Corporation with a 61% stake

• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls REA Group Limited (ASX:REA), then you'll have to look at the makeup of its share registry. With 62% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 29% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about REA Group.

See our latest analysis for REA Group

What Does The Institutional Ownership Tell Us About REA Group?

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.

REA Group 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 REA Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in REA Group. News Corporation is currently the company's largest shareholder with 61% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. The Vanguard Group, Inc. is the second largest shareholder owning 1.9% of common stock, and BlackRock, Inc. holds about 1.2% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of REA Group

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. 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.