Advertisement
U.S. markets close in 5 hours 19 minutes
  • S&P 500

    5,251.65
    +3.16 (+0.06%)
     
  • Dow 30

    39,742.03
    -18.05 (-0.05%)
     
  • Nasdaq

    16,395.53
    -3.99 (-0.02%)
     
  • Russell 2000

    2,121.20
    +6.85 (+0.32%)
     
  • Crude Oil

    82.33
    +0.98 (+1.20%)
     
  • Gold

    2,227.50
    +14.80 (+0.67%)
     
  • Silver

    24.75
    -0.00 (-0.01%)
     
  • EUR/USD

    1.0810
    -0.0020 (-0.18%)
     
  • 10-Yr Bond

    4.2000
    +0.0040 (+0.10%)
     
  • GBP/USD

    1.2641
    +0.0003 (+0.02%)
     
  • USD/JPY

    151.2720
    +0.0260 (+0.02%)
     
  • Bitcoin USD

    71,404.26
    +1,423.52 (+2.03%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,959.99
    +28.01 (+0.35%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Could The All Active Asset Capital Limited (LON:AAA) Ownership Structure Tell Us Something Useful?

A look at the shareholders of All Active Asset Capital Limited (LON:AAA) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of UK£91m, All Active Asset Capital is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about All Active Asset Capital.

See our latest analysis for All Active Asset Capital

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About All Active Asset Capital?

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.

Since institutions own only a small portion of All Active Asset Capital, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

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

We note that hedge funds don't have a meaningful investment in All Active Asset Capital. 192 Pte Limited is currently the company's largest shareholder with 13% of shares outstanding. Chris Akers is the second largest shareholder owning 8.7% of common stock, and Spreadex.com Limited, Asset Management Arm holds about 4.3% of the company stock.

Our studies suggest that the top 10 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of All Active Asset Capital

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in All Active Asset Capital Limited. Insiders own UK£14m worth of shares in the UK£91m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly retail investors, hold a substantial 59% stake in All Active Asset Capital, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 13%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 4 warning signs for All Active Asset Capital (3 make us uncomfortable!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Advertisement