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Every investor in WANdisco plc (LON: WAND) should be aware of the most powerful groups of shareholders. Large companies usually have institutions as shareholders, and we usually see insiders who own 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.
WANdisco is a smaller company with a market cap of £ 162 million, so it may still be flying under the radar of many institutional investors. Our analysis of ownership of the company below shows that institutions own shares in the company. Let’s dive deeper into each type of owner to learn more about WANdisco.
See our latest analysis for WANdisco
What does institutional ownership tell us about WANdisco?
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 WANdisco 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 WANdisco’s profit history so far (below). Of course, keep in mind that there are other factors to consider as well.
It looks like hedge funds own 18% of WANdisco’s stock. This is worth noting as hedge funds are often quite active investors who can seek to influence management. Many would like to see value added in the short or medium term (and a higher share price). The company’s largest shareholder is Global Frontier Investments, LLC with an 11% stake. Lombard Odier Asset Management (Europe) Limited and Invesco Ltd. hold 9.6% and 8.4% of the shares outstanding, respectively. the second and third largest shareholders. In addition, the company’s CEO David Richards directly owns 3.6% of the total outstanding shares.
Upon further examination, we found that more than half of the company’s shares are owned by the 8 largest shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by the smaller shareholders.
While studying the institutional ownership of a company can add value to your research, researching analyst recommendations to get a deeper understanding of a stock’s expected performance is also good practice. There’s a little analyst coverage on the stock, but not a lot. So there is room for more reach.
WANdisco insider ownership
While the exact definition of an insider can be subjective, almost every board member considers an insider. Management ultimately replies to the board. However, it is not uncommon for managers to be board members, especially when they are founders or CEOs.
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.
Our latest data shows that Insiders own a fair share of WANdisco plc. It has a market capitalization of just £ 162 million, and insiders have £ 18 million worth of shares in their own name. It’s great to see Insiders have invested so much in the business. It might be worth checking out if these insiders have been buying recently.
General public property
With a share of 35%, the public has some influence on WANdisco. 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.
Next Steps:
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. Notice that WANdisco is displayed 4 warning signs in our investment analysis , you should know that…
If you’re like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check out this free analyst forecast report 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 annual 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 the stocks mentioned.
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