While institutions invested in Summerset Group Holdings Limited (NZSE:SUM) benefited from last week's 6.3% gain, retail investors stood to gain the most
Simply Wall St
4 min read
Key Insights
Significant control over Summerset Group Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
A total of 25 investors have a majority stake in the company with 47% ownership
A look at the shareholders of Summerset Group Holdings Limited (NZSE:SUM) can tell us which group is most powerful. With 53% stake, retail investors 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.
While retail investors were the group that benefitted the most from last week’s NZ$119m market cap gain, institutions too had a 42% share in those profits.
Let's delve deeper into each type of owner of Summerset Group Holdings, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Summerset Group Holdings?
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.
Summerset Group Holdings 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. 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 Summerset Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
NZSE:SUM Earnings and Revenue Growth May 19th 2023
Hedge funds don't have many shares in Summerset Group Holdings. Looking at our data, we can see that the largest shareholder is Fisher Funds Management Limited with 7.2% of shares outstanding. Harbour Asset Management Limited is the second largest shareholder owning 5.7% of common stock, and New Zealand Superannuation Fund holds about 5.0% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 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 Summerset Group Holdings
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.
Our information suggests that Summerset Group Holdings Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own NZ$4.8m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 53% stake in Summerset Group Holdings, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
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.
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