Key Insights

• Insiders appear to have a vested interest in Record's growth, as seen by their sizeable ownership

• The top 4 shareholders own 53% of the company

• Insiders have sold recently

To get a sense of who is truly in control of Record plc (LON:REC), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 39% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Despite selling some shares recently, insiders control a good portion of the company's stock.

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

See our latest analysis for Record

What Does The Institutional Ownership Tell Us About Record?

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.

Record already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Record's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Record. The company's largest shareholder is Neil Record, with ownership of 28%. Record Plc, ESOP is the second largest shareholder owning 11% of common stock, and Leslie Meier holds about 8.3% of the company stock. Leslie Meier, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Record

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.