Private equity firms account for 75% of Restaurant Brands New Zealand Limited's (NZSE:RBD) ownership, while individual investors account for 16%
In This Article:
Key Insights
-
The considerable ownership by private equity firms in Restaurant Brands New Zealand indicates that they collectively have a greater say in management and business strategy
-
Finaccess Capital owns 75% of the company
-
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Restaurant Brands New Zealand Limited (NZSE:RBD), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 75% to be precise, is private equity firms. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 16% of the company's stockholders.
In the chart below, we zoom in on the different ownership groups of Restaurant Brands New Zealand.
Check out our latest analysis for Restaurant Brands New Zealand
What Does The Institutional Ownership Tell Us About Restaurant Brands New Zealand?
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.
Restaurant Brands New Zealand 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Restaurant Brands New Zealand's historic earnings and revenue below, but keep in mind there's always more to the story.
Restaurant Brands New Zealand is not owned by hedge funds. The company's largest shareholder is Finaccess Capital, with ownership of 75%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 3.4% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.
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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.