Institutional investors are Beeks Financial Cloud Group plc's (LON:BKS) biggest bettors and were rewarded after last week's UK￡17m market cap gain
In This Article:
Key Insights
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Significantly high institutional ownership implies Beeks Financial Cloud Group's stock price is sensitive to their trading actions
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The top 3 shareholders own 55% of the company
A look at the shareholders of Beeks Financial Cloud Group plc (LON:BKS) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And things are looking up for institutional investors after the company gained UK￡17m in market cap last week. The one-year return on investment is currently 98% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Beeks Financial Cloud Group.
Check out our latest analysis for Beeks Financial Cloud Group
What Does The Institutional Ownership Tell Us About Beeks Financial Cloud Group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Beeks Financial Cloud Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Beeks Financial Cloud Group, (below). Of course, keep in mind that there are other factors to consider, too.
Beeks Financial Cloud Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Gordon McArthur with 37% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 6.3%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.