If you want to know who really controls Kape Technologies Plc (LON: CAPE), then you need to look at the composition of the share register. Institutions often own stocks in larger companies, and we expect insiders to own significant stakes in smaller companies. I generally like to see some level of inside ownership, if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your portfolio.
Kape Technologies isn’t huge, but neither is it particularly small. It has a market capitalization of UK £ 672m which means it would generally expect to see some institutions on the share register. A look at our data on owner groups (below) shows that institutional investors have bought into the company. Let’s take a closer look at what the different types of shareholders can tell us about Kape Technologies.
What does institutional ownership tell us about Kape Technologies?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they are often more enthusiastic about a stock once it has been included in a major index. We would expect most companies to have some institutes on their register, especially as they grow.
We can see that Kape Technologies has institutional investors; and they hold a good chunk of the company’s stock. This implies that the analysts who work for these institutions have looked at the stock and like it. But like everyone else, they can be wrong too. 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 out Kape Technologies’ earnings performance so far (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Kape Technologies. If we look at our data, we can see that Teddy Sagi is the largest shareholder with 48% of the shares outstanding. The second and third largest shareholders are Miton Asset Management Limited and Federated Hermes, Inc., which have the same number of shares in their names with 3.2%.
A closer examination of the shareholders’ register has shown us that 2 of the top shareholders with their 51 percent share have a significant stake in the company.
Studying institutional ownership is a great way to measure and filter the expected performance of a stock. The same can be achieved by examining the sentiments of the analysts. There are plenty of analysts covering the stock so it might be worthwhile to see what they are forecasting as well.
Kape Technologies inside property
The definition of corporate insider can be subjective and varies depending on the legal system. Our data reflects individual insiders and at least includes board members. 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 managers sit on the board themselves.
Most consider insider ownership to be a positive as it may indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.
We understand that insiders own more than half of Kape Technologies Plc. This gives them effective control over the company. So you have £ 361million in this £ 672m deal. Most would be happy if the board of directors invests by their side. You might want todiscover (free) when they have bought or sold.
General public property
The general public, with a 29% stake in the company, will not be easily ignored. 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.
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 we discovered 2 warning signs for Kape Technologies that you should know before investing here.
If you’re like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check it out This free report shows analyst projections for the 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.
This article from Simply Wall St is of a general nature. 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 the stocks mentioned.
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