SDI Group plc (LON:SDI)’s major shareholder groups have power over the company. Insiders often own a large portion of younger, smaller companies, while large companies tend to have institutional shareholders. Companies that used to be publicly owned tend to have less insider ownership.
With a market cap of £147m, SDI Group is a small-cap stock so it may not be familiar to many institutional investors. In the chart below, we see that institutional investors have bought into the company. Let’s dive deeper into each ownership type to learn more about SDI Group.
Check out our latest analysis for SDI Group
What does institutional ownership tell us about SDI Group?
Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.
We can see that SDI Group has institutional investors; and they hold a good portion of the company’s stock. This may indicate that the company has a certain level of credibility in the investor community. However, it’s best not to rely on the supposed confirmation that comes from institutional investors. They too are sometimes wrong. If several institutes change their opinion on a stock at the same time, the share price could fall quickly. It is therefore worth taking a look at the earnings history of the SDI Group. Of course, what really matters is the future.
With institutional investors owning more than half of the outstanding shares, the board likely needs to be mindful of their preferences. SDI Group is not owned by hedge funds. Joh. Berenberg, Gossler & Co. KG, Asset Management Arm is currently the company’s largest shareholder with 7.8% of outstanding shares. JP Morgan Asset Management, Inc. and BGF Investment Management Ltd. hold 7.2% and 6.3% of the outstanding shares, respectively. the second and third largest shareholders. In addition, CEO Michael Creedon owns 0.8% of the company’s shares.
A closer look at our ownership numbers suggests that the 11 largest shareholders together hold 50% ownership, meaning that no single shareholder has the majority.
Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There have been a few analyst reports on the stock, but it could become even better known over time.
Insider ownership of SDI Group
The definition of corporate insider can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. The management of the company is accountable to the board of directors, which should represent the interests of the shareholders. It is noteworthy that sometimes high-ranking managers themselves sit on the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.
Our latest data shows that insiders own some shares in SDI Group plc. As individuals, the insiders collectively own the £3.5m company valued at £147m. This at least shows some alignment, but we usually like to see larger insider holdings. You can click here to see if these Insiders have bought or sold.
General Public Property
The general public, which are typically retail investors, hold a 16% stake in SDI Group. While this group may not necessarily be in charge, it can certainly have a real impact on how the company is run.
Private Equity Ownership
With a stake of 6.3%, private equity houses are able to help shape the corporate strategy with a focus on value creation. Some might like that because sometimes private equity are activists who hold management accountable. But sometimes private equity sells out after the company goes public.
It’s always worth thinking about the different groups that own shares in a company. But to better understand SDI Group, we need to consider many other factors. Think of risks, for example. Every company has them and we discovered them 1 warning label for SDI Group you should know.
But ultimately it is the future, not the past that determines how well the owners of this business will do. Therefore, we think it’s wise to take a look at this free report that shows whether analysts are predicting a brighter future.
Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.
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This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or 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 price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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