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A look at the shareholders of RS2 Software plc (MTSE: RS2) can tell us which group is the strongest. Large companies usually have institutions as shareholders, and we usually see insiders who own stakes in smaller companies. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of € 330 million, RS2 Software is a small-cap stock that many institutional investors may not be familiar with. In the graph below we can see that institutional investors have bought into the company. Let’s dive deeper into each type of owner to learn more about RS2 software.
Check out our latest analysis on RS2 software
What does institutional ownership tell us about RS2 software?
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 RS2 Software has institutional investors; and they hold a good chunk of the company’s stock. This suggests some credibility with 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. It is therefore worth checking the previous earnings trend of RS2 software (below). Of course, keep in mind that there are other factors to consider as well.
We find that hedge funds are not making a sensible investment in RS2 software. ITM Holding Limited is currently the largest shareholder with 50% of the shares outstanding. With such a large stake in ownership, we infer that they have significant control over the future of the company. Barclays PLC Private Banking & Investment Banking Investment and HSBC Global Asset Management (UK) Limited are the second and third largest shareholders with 18% and 1.1% of the shares outstanding, respectively.
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. Our information suggests that there is no analyst coverage of the stock, so it’s likely little known.
RS2 software inside ownership
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 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.
Please note that our data does not show that board members personally hold shares. Not all jurisdictions have the same rules for disclosing inside property, and it is possible that we have missed something here. So you can click here and learn more about the CEO.
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.
Ownership of private companies
It appears that private companies own 50% of the shares in RS2 Software. It might be worth looking into in more detail. If related parties, such as insiders, are involved in any of these private companies, this should be disclosed in the annual report. Private companies can also have a strategic interest in the company.
Next Steps:
While it is worth considering a company’s different groups of owners, there are other factors that are even more important. For example, we identified 2 warning signs for RS2 software (1 is a bit worrying) that you should be aware of.
Naturally This may not be the best stock to buy. So you might want ours free Collection of interesting prospects with favorable financial ratios.
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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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 offer you long-term, focused analysis based on fundamental data. 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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