Get Fully Briefed with Yahoo Finance, delivered straight to your inbox.
To get a sense of who is truly in control of Likewise Group plc (LON:LIKE), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 59% ownership. 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. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Likewise Group.
Check out our latest analysis for Likewise Group
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.
As you can see, institutional investors have a fair amount of stake in Likewise Group. 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 Likewise Group, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Likewise Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Vartan & Son, Asset Management Arm with 13% of shares outstanding. The second and third largest shareholders are Anthony Brewer and Ravenscroft Investment Management, with an equal amount of shares to their name at 12%. Anthony Brewer, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
On looking further, we found that 51% 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 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Likewise Group plc. It has a market capitalization of just UK£4.7b, and insiders have UK£1.3b worth of shares in their own names. That’s quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
The general public– including retail investors — own 12% stake in the company, and hence can’t easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
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. Case in point: We’ve spotted 1 warning sign for Likewise Group you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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
The Melbourne couple is now awaiting trial after they allegedly spent the money on houses, cars, art and furniture.
It’s a Friday in 2001 and you’re gearing up for ‘family night’. There’s only one place you were heading.
The 20 most common jobs in Australia have been revealed, with four industries employing the most people.
The local market is expected to lift this morning after a choppy session in the US overnight. This is your Wednesday morning wrap.
Victims of the failed robodebt scheme will have any ongoing investigations wiped. This is what you need to know.
Australia's best and worst performing super funds have been named. Find out if you should consider making a change.
The local market is expected to fall slightly at the open after another see-saw session on Wall Street overnight. This is your Thursday morning wrap.
A commuter has called out an apparent lack of logic over a fare-evasion fine. Here's why she was left seething.
The majority of Aussie workers rank this one thing as the most important to them at work. What is your priority?
Aussie tenants are being pushed to the brink when it comes to affording a unit, with an influx of renters and no new properties hitting the market.
The S&P; 500 and Nasdaq have ended lower, with indications from the Bank of England that it would support the country's bond market for just three more days adding to market jitters late in the session.Trading was volatile on Tuesday, with investors cautious ahead of key US inflation data and the start of third-quarter earnings later this week.
Millions of Aussies are owed refunds from the financial sector. Find out if you are eligible.
Westpac has ditched lenders mortgage insurance for some potential home buyers, but there is a certain requirement you need to meet first. Are you eligible?
An Adelaide woman has been awarded $3,000 after she was sacked unfairly.
Commonwealth Bank chairman Paul O'Malley says it will be "incredibly difficult" for the world to meet the Paris targets but is pledging Australia's second-biggest corporation won't bank with companies that do not try.Mr O'Malley told shareholders at the bank's annual general meeting on Wednesday that CBA is looking at various scenarios for meeting climate targets in a science-driven way, guided by national science agency CSIRO.
Aussies could save up to $1,900 per year by getting rid of gas, a new report found.
How many hours are you putting in at work? It turns out not all industries are created equal, with census data revealing who is spending the most time on the job.
Aussies will face rising costs this Christmas and fork out more on groceries, fuel and household bills.