While individual investors own 22% of SG Fleet Group Limited (ASX:SGF), public companies are its largest shareholders with 53% ownership
Key Insights
Significant control over SG Fleet Group by public companies implies that the general public has more power to influence management and governance-related decisions
53% of the company is held by a single shareholder (Super Group Limited)
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of SG Fleet Group Limited (ASX:SGF) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 22% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about SG Fleet Group.
Check out our latest analysis for SG Fleet Group
What Does The Institutional Ownership Tell Us About SG Fleet 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.
SG Fleet Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at SG Fleet Group's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in SG Fleet Group. Super Group Limited is currently the company's largest shareholder with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 13% and 2.7% of the shares outstanding respectively, LeasePlan Corporation N.V. and Wilson Asset Management (International) Pty Limited are the second and third largest shareholders. Furthermore, CEO Robert Blau is the owner of 2.4% of the company's shares.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SG Fleet 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. 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.
We can report that insiders do own shares in SG Fleet Group Limited. As individuals, the insiders collectively own AU$24m worth of the AU$701m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 14%, of the company's shares. 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.
Public Company Ownership
It appears to us that public companies own 53% of SG Fleet Group. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand SG Fleet Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with SG Fleet Group (including 1 which can't be ignored) .
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
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