A look at the shareholders of Peet Limited (ASX: PPC) can tell us which group is the most powerful. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller ones. Warren Buffett said he likes “a company that has an enduring competitive advantage and is run by capable, owner-focused people.” Hence, it’s nice to see some inside ownership as it may suggest that management is owner-focused.
Peet is not a large company by global standards. It has a market capitalization of A $ 594 million, which means it would be ignored by many institutional investors. In the following graphic we can see that institutions stand out in the share register. We can zoom in on the different groups of owners to learn more about Peet.
Check out our latest analysis for Peet. on
What does institutional ownership tell us about Peet?
Institutional investors often compare their own returns to the returns of a frequently tracked index. As a result, they typically consider buying larger companies that are included in the relevant benchmark index.
We can see that Peet has institutional investors; and they hold a good chunk of the company’s stock. This implies that the analysts who work for these institutions have looked at the stock and like it. But like everyone else, they can be wrong too. If several institutes own a share, there is always the risk that they are in a “crowd trade”. When such a trade goes wrong, multiple parties can compete to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Peet’s historical earnings and earnings below, but keep in mind that there is always more to history.
We find that hedge funds do not have a meaningful investment in Peet. Our data shows that Anthony Lennon is the largest shareholder with 20% of the shares outstanding. In comparison, the second and third largest shareholders hold around 18% and 14% of the shares, respectively. Additionally, we found that Brendan Gore, the CEO, owns 1.1% of the shares allotted to her name.
The story goes on
To make our study more interesting, we found that the top 3 shareholders have a controlling stake in the company, meaning they are powerful enough to influence the company’s decisions.
While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analyst sentiment to know which way the wind is blowing. Our information suggests that there is no analyst coverage of the stock, so it’s likely little known.
Peet inside ownership
The definition of an insider can vary slightly between countries, but the members of the board of directors always count. The company management is subordinate to the board of directors and this should represent the interests of the shareholders. It is noteworthy that sometimes top managers sit on the board themselves.
I generally think insider ownership is a good thing. In some cases, however, it makes it difficult for other shareholders to hold the board responsible for decisions.
Our latest data shows that Insiders own a fair stake in Peet Limited. Insiders own shares valued at AU $ 170 million in the AU $ 594 million company. I would say this shows the consistency with the shareholders, but it is worth noting that the company is still quite small; Some insiders may have started the company. You can click here to see if these Insiders bought or sold.
General public property
At 19%, the public has some influence on Peet. While this group may not necessarily be in charge, it can certainly have a real impact on how the company is run.
Ownership of private companies
It appears that private companies own 6.8% of Peet’s shares. Private companies can be related parties. Sometimes insiders are involved in a public company through an interest in a private company, rather than as an individual. While difficult to draw rough conclusions, it is worth mentioning as an area for further research.
I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. Notice that you see Peet 2 warning signs in our investment analysis , you should know that…
If you’d rather look at another company – one with potentially superior financials – then don’t miss out free List of interesting companies, backed by strong financial data.
Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual financial statements.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
Do you have any feedback on this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.