Every investor in boohoo group plc (LON: BOO) should be aware of the most powerful shareholder groups. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller ones. Warren Buffett said he likes “a company that has an enduring competitive advantage and is run by capable, owner-focused people.” So it’s nice to see some inside ownership as it might suggest that management is owner-focused.
The boohoo group has a market cap of Â£ 3.9bn, so it’s too big to fly under the radar. We would expect both institutions and private investors to own part of the company. In the graphic below we can see that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can tell us about the boohoo group.
Check out our latest analysis for the Boohoo group
What does institutional ownership tell us about the boohoo group?
Institutional investors often compare their own returns to the returns of a frequently tracked index. As a result, they typically consider buying larger companies that are included in the relevant benchmark index.
We can see that the Boohoo group has institutional investors; and they hold a good chunk of the company’s stock. This suggests some credibility among professional investors. But we cannot rely on that alone, because institutions sometimes make bad investments, as everyone does. It’s not uncommon for the stock price to drop sharply when two large institutional investors are trying to sell a stock at the same time. So it’s worth checking the boohoo Group’s past profit development (below). Of course, keep in mind that there are other factors to consider as well.
The boohoo group is not owned by hedge funds. Our data suggests that Mahmud Kamani, who is also the company’s top key executive, holds the most shares at 13%. When an insider owns a significant portion of a company’s stock, investors see it as a positive sign, as it suggests that insiders are poised to tie up their assets for the company’s future. In comparison, the second and third largest shareholders hold around 10.0% and 5.7% of the shares, respectively.
We did further research and found that 9 of the top shareholders make up 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. Quite a few analysts cover the stock so you can easily look at the forecast growth.
Boohoo group insider property
While the exact definition of an insider can be subjective, almost every board member considers an insider. The company management reports to the board of directors, who should represent the interests of the shareholders. It is noteworthy that sometimes top managers sit on the board themselves.
I generally think insider ownership is a good thing. In some cases, however, it makes it difficult for other shareholders to hold the board responsible for decisions.
It appears that insiders own a significant stake in the boohoo group plc. It is very interesting to see that insiders have a significant Â£ 788m stake in this Â£ 3.9bn deal. Most would be happy if the board of directors invests by their side. You may want to access this free chart showing recent trades from insiders.
General public property
The public owns 37% of the boohoo group. While this property size may not be enough to sway a political decision in their favor, they can still have a collective influence on company policy.
It is always worth thinking about the different groups that own shares in a company. But in order to better understand the Boohoo group, we need to consider many other factors. Notice that the Boohoo group is displayed 2 warning signs in our investment analysis , and 1 of them cannot be ignored …
Eventually the future is the most important. You can access it free Report on analyst forecast for the company.
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 annual financial statements.
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