Key Insights

• The considerable ownership by retail investors in Fiducian Group indicates that they collectively have a greater say in management and business strategy

• The top 6 shareholders own 50% of the company

• Insiders have been buying lately

Every investor in Fiducian Group Ltd (ASX:FID) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual insiders on the other hand have a 42% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

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

View our latest analysis for Fiducian Group

What Does The Institutional Ownership Tell Us About Fiducian 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.

We can see that Fiducian Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Fiducian Group, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Fiducian Group. The company's CEO Inderjit Singh is the largest shareholder with 35% of shares outstanding. London City Equities Limited is the second largest shareholder owning 6.7% of common stock, and Grandeur Peak Global Advisors, LLC holds about 3.1% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.