U.S. markets closed
  • S&P Futures

    4,423.75
    -9.25 (-0.21%)
     
  • Dow Futures

    34,701.00
    -42.00 (-0.12%)
     
  • Nasdaq Futures

    15,141.50
    -53.25 (-0.35%)
     
  • Russell 2000 Futures

    2,272.70
    -4.30 (-0.19%)
     
  • Crude Oil

    75.31
    -0.14 (-0.19%)
     
  • Gold

    1,748.60
    -3.40 (-0.19%)
     
  • Silver

    22.53
    -0.16 (-0.72%)
     
  • EUR/USD

    1.1689
    -0.0012 (-0.11%)
     
  • 10-Yr Bond

    1.4840
    +0.0240 (+1.64%)
     
  • Vix

    18.76
    +1.01 (+5.69%)
     
  • GBP/USD

    1.3689
    -0.0015 (-0.11%)
     
  • USD/JPY

    111.0840
    +0.1060 (+0.10%)
     
  • BTC-USD

    42,300.72
    -1,612.86 (-3.67%)
     
  • CMC Crypto 200

    1,046.81
    -54.71 (-4.97%)
     
  • FTSE 100

    7,063.40
    +11.92 (+0.17%)
     
  • Nikkei 225

    30,057.41
    -182.65 (-0.60%)
     

What You Need To Know About Formula One Group's (NASDAQ:FWON.K) Investor Composition

·4 min read

If you want to know who really controls Formula One Group (NASDAQ:FWON.K), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Formula One Group has a market capitalization of US$8.4b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Formula One Group.

See our latest analysis for Formula One Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Formula One Group?

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 Formula One Group 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 Formula One Group, (below). Of course, keep in mind that there are other factors to consider, too.

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It looks like hedge funds own 7.4% of Formula One Group shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Caledonia (Private) Investments Pty Limited is currently the largest shareholder, with 7.4% of shares outstanding. The second and third largest shareholders are Manulife Asset Management and Janus Henderson Group plc, with an equal amount of shares to their name at 5.4%.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 22 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Formula One Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in Formula One Group. Insiders own US$301m worth of shares (at current prices). I sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public holds a 12% stake in Formula One Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Formula One Group better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

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.