Get Fully Briefed with Yahoo Finance, delivered straight to your inbox.
If you want to know who really controls easyJet plc (LON:EZJ), 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 66% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let’s take a closer look to see what the different types of shareholders can tell us about easyJet.
Check out our latest analysis for easyJet
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that easyJet does have institutional investors; and they hold a good portion of the company’s stock. 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. 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 easyJet, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don’t have many shares in easyJet. Stelios Haji-Ioannou is currently the company’s largest shareholder with 9.5% of shares outstanding. With 5.9% and 4.5% of the shares outstanding respectively, Polys Haji-Ioannou and UBS Asset Management are the second and third largest shareholders.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in easyJet plc. It has a market capitalization of just UK£2.2b, and insiders have UK£342m worth of shares in their own names. That’s quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
The general public– including retail investors — own 17% stake in the company, and hence can’t easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
New research from CHOICE finds you could save big by downgrading from gold health cover. Here's what you need to know.
Aussies working in these industries are getting a pay bump this week. Find out if that includes you.
NSW drivers will be able to get $750 cash back under a new scheme. Here’s what you need to know.
Aussies are being warned to be on the lookout for an email claiming they are eligible for a $750 refund. This is what you need to know.
Rental prices are skyrocketing to record levels, with a surprising city in the top spot as the most expensive place to rent. This is what you need to know.
Millions of Australians are clueless about their own credit score, according to new research. Here’s how to find out what yours is.
The local market is expected to tumble this morning after Wall Street sank over the weekend. This is your Monday morning wrap.
The Nasdaq has hit a two-year low as chipmakers bore the brunt of US efforts to hobble China's semiconductor industry while investors treaded carefully ahead of the start of the earnings season.The Philadelphia SE Semiconductor index was down 2.
A quarter of borrowers are facing mortgage stress as more interest rate rises are expected in 2023.
Tabcorp is investing $33 million to take a 20 per cent stake in a two-year-old sports betting app with social media features that have made it popular with a younger demographic.Launched in May 2020, Dabble has more than 150,000 customers who are able to copy each other's bets, follow punters, comment on wagers and chat in public "banter channels".