Key Insights

• Ryman Healthcare's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• 42% of the business is held by the top 25 shareholders

• Institutions own 38% of Ryman Healthcare

Every investor in Ryman Healthcare Limited (NZSE:RYM) should be aware of the most powerful shareholder groups. With 57% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, institutions make up 38% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

In the chart below, we zoom in on the different ownership groups of Ryman Healthcare.

View our latest analysis for Ryman Healthcare

What Does The Institutional Ownership Tell Us About Ryman Healthcare?

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.

We can see that Ryman Healthcare does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ryman Healthcare's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Ryman Healthcare. Karori Capital Limited is currently the company's largest shareholder with 7.7% of shares outstanding. For context, the second largest shareholder holds about 6.3% of the shares outstanding, followed by an ownership of 5.6% by the third-largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ryman Healthcare

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.