Private companies who have a significant stake must be disappointed along with institutions after Goodwin PLC's (LON:GDWN) market cap dropped by UK£45m

In This Article:

Key Insights

  • The considerable ownership by private companies in Goodwin indicates that they collectively have a greater say in management and business strategy

  • J. M.Securities Limited owns 50% of the company

  • Insiders have been buying lately

To get a sense of who is truly in control of Goodwin PLC (LON:GDWN), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 21% came under pressure after market cap dropped to UK£458m last week,private companies took the most losses.

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

Check out our latest analysis for Goodwin

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Goodwin?

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 Goodwin 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. 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 Goodwin's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Goodwin is not owned by hedge funds. Our data shows that J. M.Securities Limited is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 8.3% and 6.7% of the shares outstanding respectively, James Sharp & Co., Asset Management Arm and John Ridley are the second and third largest shareholders.

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.

Insider Ownership Of Goodwin

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.