Institutional investors have a lot riding on Bravura Solutions Limited (ASX:BVS) with 60% ownership
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Bravura Solutions' stock price might be vulnerable to their trading decisions
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The top 5 shareholders own 55% of the company
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Bravura Solutions Limited (ASX:BVS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week’s 27% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 81% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Bravura Solutions.
Check out our latest analysis for Bravura Solutions
What Does The Institutional Ownership Tell Us About Bravura Solutions?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Bravura Solutions already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Bravura Solutions' earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Bravura Solutions. Pinetree Capital Ltd. is currently the largest shareholder, with 22% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 8.9%, of the shares outstanding, respectively.
On looking further, we found that 55% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.