While private companies own 19% of Turners Automotive Group Limited (NZSE:TRA), retail investors are its largest shareholders with 59% ownership
Key Insights
Turners Automotive Group's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
A total of 25 investors have a majority stake in the company with 41% ownership
Insiders have been selling lately
To get a sense of who is truly in control of Turners Automotive Group Limited (NZSE:TRA), it is important to understand the ownership structure of the business. With 59% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And private companies on the other hand have a 19% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Turners Automotive Group.
See our latest analysis for Turners Automotive Group
What Does The Institutional Ownership Tell Us About Turners Automotive Group?
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.
As you can see, institutional investors have a fair amount of stake in Turners Automotive Group. 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 Turners Automotive Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Turners Automotive Group is not owned by hedge funds. Bartel Holdings Limited is currently the largest shareholder, with 12% of shares outstanding. Montezemolo Holdings Limited is the second largest shareholder owning 6.8% of common stock, and Matthew Harrison holds about 5.7% of the company stock. Matthew Harrison, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Todd Hunter is the owner of 1.0% of the company's shares.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Turners Automotive 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.
It seems insiders own a significant proportion of Turners Automotive Group Limited. It has a market capitalization of just NZ$399m, and insiders have NZ$64m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public -- including retail investors -- own 59% of Turners Automotive Group. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Company Ownership
It seems that Private Companies own 19%, of the Turners Automotive 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 Turners Automotive Group better, we need to consider many other factors. Be aware that Turners Automotive Group is showing 3 warning signs in our investment analysis , and 1 of those is significant...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
