What you need to know about the Breedon Group plc (LON: BREE) investor makeup

If you want to know who really controls Breedon Group plc (LON: BREE), you need to look at the composition of the share register. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller ones. We also tend to see a lower proportion of insiders in companies that were previously publicly owned.

Breedon Group has a market cap of £ 1.7 billion, so we’d expect some institutional investors to have noticed the stock. Our analysis of company ownership 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 Breedon Group.

Check out our latest analysis for the Breedon Group

What does institutional ownership tell us about Breedon Group?

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 large index. We would expect most companies to have some institutes on the register, especially as they grow.

The Breedon Group already has institutions in the share register. In fact, they own a respectable stake in the company. 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. So it’s worth checking the Breedon Group’s earnings performance so far (below). Of course, keep in mind that there are other factors to consider as well.

Investors should note that institutions actually own more than half of the company, so together they can exert significant power. It looks like hedge funds own 9.0% of Breedon Group’s shares. This gets my attention because hedge funds sometimes seek to influence management or make changes that add value to shareholders in the short term. Our data shows that Abicad Holding Limited is the largest shareholder with 9.8% of the shares outstanding. In context, the second largest shareholder holds approximately 9.0% of the outstanding shares, followed by 8.1% owned by the third largest shareholder.

We did further research and found that 9 of the top shareholders make up roughly 53% 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.

Breedon Group 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.

Insider ownership is positive when it signals that management thinks like the real owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative under certain circumstances.

Our latest data shows that insiders own less than 1% of Breedon Group plc. However, we point out that it is possible that insiders have an indirect interest through a private company or another corporate structure. It’s a big company, so even a small proportional stake can create a match between the board of directors and the shareholders. In this case, Insiders own shares valued at £ 4.7 million. It is arguably just as important to consider recent purchases and sales. You can click here to see if Insiders bought or sold.

General public property

The general public, with a 23% stake in the company, will not be easily ignored. While this property size may not be sufficient 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 9.8% of the shares in Breedon Group. Private companies can be related parties. Sometimes insiders are involved in a public company through an interest in a private company, rather than as an individual. While difficult to draw rough conclusions, it is worth mentioning as an area for further research.

Next Steps:

While it is worth considering a company’s different groups of owners, there are other factors that are even more important.

Many find it useful take a detailed look at how a company has performed in the past. You can access it detailed graphic the previous earnings, sales and cash flow.

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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