With 80% ownership of the shares, Halfords Group plc (LON:HFD) is heavily dominated by institutional owners
In This Article:
Key Insights
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Institutions' substantial holdings in Halfords Group implies that they have significant influence over the company's share price
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53% of the business is held by the top 10 shareholders
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Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
To get a sense of who is truly in control of Halfords Group plc (LON:HFD), it is important to understand the ownership structure of the business. With 80% stake, institutions 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).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Halfords Group, beginning with the chart below.
Check out our latest analysis for Halfords Group
What Does The Institutional Ownership Tell Us About Halfords Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Halfords Group. 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 Halfords Group's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Halfords Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Fidelity International Ltd with 10.0% of shares outstanding. With 7.5% and 6.8% of the shares outstanding respectively, Jupiter Fund Management Plc and Gresham House Asset Management Limited are the second and third largest shareholders.
On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.