With 53% ownership, Schaffer Corporation Limited (ASX:SFC) insiders have a lot at stake
In This Article:
Key Insights
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Insiders appear to have a vested interest in Schaffer's growth, as seen by their sizeable ownership
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57% of the business is held by the top 5 shareholders
To get a sense of who is truly in control of Schaffer Corporation Limited (ASX:SFC), it is important to understand the ownership structure of the business. With 53% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of Schaffer regarding the company's future would be crucial to them.
Let's take a closer look to see what the different types of shareholders can tell us about Schaffer.
View our latest analysis for Schaffer
What Does The Institutional Ownership Tell Us About Schaffer?
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.
Schaffer already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Schaffer, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Schaffer. Looking at our data, we can see that the largest shareholder is the CEO John Schaffer with 25% of shares outstanding. Blanka Schaffer is the second largest shareholder owning 9.6% of common stock, and Mutual Trust Pty Ltd, Asset Management Arm holds about 7.8% of the company stock.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.