U.S. markets closed
  • S&P Futures

    3,723.25
    -8.75 (-0.23%)
     
  • Dow Futures

    29,684.00
    -66.00 (-0.22%)
     
  • Nasdaq Futures

    11,514.75
    -41.00 (-0.35%)
     
  • Russell 2000 Futures

    1,717.30
    -3.50 (-0.20%)
     
  • Crude Oil

    81.86
    -0.29 (-0.35%)
     
  • Gold

    1,662.80
    -7.20 (-0.43%)
     
  • Silver

    18.73
    -0.15 (-0.79%)
     
  • EUR/USD

    0.9683
    -0.0056 (-0.57%)
     
  • 10-Yr Bond

    3.7050
    -0.2590 (-6.53%)
     
  • Vix

    30.18
    -2.42 (-7.42%)
     
  • GBP/USD

    1.0793
    -0.0092 (-0.85%)
     
  • USD/JPY

    144.3460
    +0.2240 (+0.16%)
     
  • BTC-USD

    19,451.94
    +818.71 (+4.39%)
     
  • CMC Crypto 200

    444.64
    +15.86 (+3.70%)
     
  • FTSE 100

    7,005.39
    +20.80 (+0.30%)
     
  • Nikkei 225

    26,238.32
    +64.34 (+0.25%)
     

Finbar Group Limited's (ASX:FRI) top owners are private companies with 37% stake, while 26% is held by individual investors

·4 min read

Every investor in Finbar Group Limited (ASX:FRI) should be aware of the most powerful shareholder groups. With 37% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 26% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Finbar Group.

Check out our latest analysis for Finbar Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Finbar Group?

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.

Finbar Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Finbar Group's historic earnings and revenue below, but keep in mind there's always more to the story.

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

We note that hedge funds don't have a meaningful investment in Finbar Group. Kai Xin Guo Pte Ltd. is currently the company's largest shareholder with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.7% and 6.9% of the stock. John Chan, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Darren Pateman directly holds 1.3% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Finbar Group

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 information suggests that insiders maintain a significant holding in Finbar Group Limited. Insiders have a AU$35m stake in this AU$182m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Finbar Group. 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.

Private Company Ownership

It seems that Private Companies own 37%, of the Finbar Group stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Finbar Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Finbar Group (including 1 which is significant) .

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.

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