Every investor in RBG Holdings plc (LON: RBGP) should be aware of the most powerful groups of shareholders. With 36% of the shares, institutions own the maximum shares in the company. In other words, the group will gain (or lose most) most of its investment in the company.
The 12% gain last week means institutional investors were on the positive end of the spectrum, even though the company has shown strong longer-term trends. Last week’s profits would have further increased the one-year return to shareholders, which is currently 133%.
Let’s dig deeper into each of the types of RBG Holdings owners, starting with the table below.
Check out our latest analysis for RBG Holdings
What does institutional ownership tell us about RBG Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they are often more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutes on the register, especially as they grow.
As you can see, institutional investors have their fair share of RBG Holdings. This may suggest that the company has some credibility in the investment community. However, it is best to be careful not to rely on the supposed validation of institutional investors. Sometimes they get it wrong too. If several institutes own a share, there is always the risk that they are in a “crowd trade”. When such a trade goes wrong, multiple parties can compete to sell stocks quickly. This risk is higher in a company with no history of growth. You can see RBG Holdings historical earnings and earnings below, but keep in mind that there is always more to history.
RBG Holdings is not owned by hedge funds. Since actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In the case of RBG Holdings, its top key executive, Ian Rosenblatt, is the largest shareholder, holding 18% of the outstanding shares. In context, the second largest shareholder holds approximately 13% of the outstanding shares, followed by a 12% stake from the third largest shareholder. Interestingly, Nicola Foulston, the third largest shareholder, is also a member of the board of directors, indicating a high level of insider exposure among the company’s top shareholders.
We did further research and found that 6 of the top shareholders account for roughly 51% of the register, which means that there are some smaller shareholders alongside larger shareholders, which somewhat balances the interests of the others.
While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analyst sentiment to know which way the wind is blowing. There are plenty of analysts covering the stock so it might be worthwhile to see what they are forecasting as well.
Inside ownership of RBG Holdings
The definition of an insider can vary slightly from country to country, but board members always count. The company management is subordinate to the board of directors and this should represent the interests of the shareholders. It is noteworthy that sometimes top-level managers sit on the board themselves.
Insider ownership is positive when it signals that management thinks like the real owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative under certain circumstances.
We understand that insiders have a significant stake in RBG Holdings plc. Insiders own £ 39m worth of shares in the company for £ 115m. This could indicate that the founders still own a lot of stocks. You can click here to see if they bought or sold.
General public property
With a 29% share, the general public, composed mostly of individual investors, has some influence on RBG Holdings. While this group may not necessarily be in charge, they can certainly have a real impact on how the company is run.
I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. For example, consider the ubiquitous specter of investment risk. We have identified 2 warning signs with RBG Holdings, and understanding them should be part of your investment process.
But in the end it is the future, not the past that will determine how well the owners of this company will fare. Hence, we think it would be wise to take a look at this free report which shows whether analysts are predicting a brighter future.
Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the financial statements.
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This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in any of the stocks mentioned.