While institutions invested in Super Group (SGHC) Limited (NYSE:SGHC) benefited from last week's 8.0% gain, private companies stood to gain the most
Key Insights
Super Group (SGHC)'s significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
66% of the business is held by the top 2 shareholders
A look at the shareholders of Super Group (SGHC) Limited (NYSE:SGHC) can tell us which group is most powerful. With 46% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 8.0% increase in the stock price last week, private companies profited the most, but institutions who own 27% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Super Group (SGHC), beginning with the chart below.
View our latest analysis for Super Group (SGHC)
What Does The Institutional Ownership Tell Us About Super Group (SGHC)?
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.
As you can see, institutional investors have a fair amount of stake in Super Group (SGHC). 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. 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 Super Group (SGHC)'s historic earnings and revenue below, but keep in mind there's always more to the story.
Super Group (SGHC) is not owned by hedge funds. The company's largest shareholder is Alea Trust, with ownership of 46%. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 2.6% by the third-largest shareholder. Neal Menashe, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 66% stake.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Super Group (SGHC)
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Super Group (SGHC) Limited. This is a big company, so it is good to see this level of alignment. Insiders own US$72m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Super Group (SGHC). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 46%, of the company's shares. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Super Group (SGHC) is showing 2 warning signs in our investment analysis , you should know about...
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
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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.
