Institutions profited after Allfunds Group plc's (AMS:ALLFG) market cap rose €128m last week but private companies profited the most
In This Article:
Key Insights
-
Allfunds Group's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
-
A total of 4 investors have a majority stake in the company with 51% ownership
Every investor in Allfunds Group plc (AMS:ALLFG) should be aware of the most powerful shareholder groups. With 35% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While private companies were the group that benefitted the most from last week’s €128m market cap gain, institutions too had a 33% share in those profits.
Let's delve deeper into each type of owner of Allfunds Group, beginning with the chart below.
See our latest analysis for Allfunds Group
What Does The Institutional Ownership Tell Us About Allfunds Group?
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.
As you can see, institutional investors have a fair amount of stake in Allfunds Group. 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. 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 Allfunds Group's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Allfunds Group. LHC1 Limited is currently the company's largest shareholder with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.5% and 6.0%, of the shares outstanding, respectively.
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 it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Allfunds Group
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.