This is what the shareholding structure of The Artisanal Spirits Company plc looks like (LON: ART)
A look at the shareholders of The Artisanal Spirits Company plc (LON: ART) can tell us which group is more powerful. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Warren Buffett said he enjoys “a business with sustainable competitive advantages, led by skilled people and owner-centered.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.
Artisanal Spirits is not a large company by global standards. It has a market cap of Â£ 77million, which means it wouldn’t have the attention of many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Artisanal Spirits.
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What does institutional ownership tell us about artisanal spirits?
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 businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors have a significant stake in Artisanal Spirits. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be careful not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Artisanal Spirits’ earnings history below. Of course, the future is what really matters.
Hedge funds don’t have a lot of shares in Artisanal Spirits. The company’s largest shareholder is Inverleith LLP, with a 16% stake. In comparison, the second and third shareholders hold around 8.4% and 7.7% of the capital.
Looking at our ownership data, we found that 13 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. While there is some coverage from analysts, the company is likely not widely covered. So he might get more attention, down the track.
Insider ownership of artisanal spirits
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders have a significant stake in The Artisanal Spirits Company plc. Insiders have a Â£ 11million stake in the Â£ 77million venture. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.
General public property
The general public has a substantial 51% stake in Artisanal Spirits, which suggests that this is a fairly popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
With a 25% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
It’s always worth thinking about the different groups that own shares in a company. But to better understand artisanal spirits, there are many other factors that we need to consider. For example, we discovered 1 warning sign for artisanal spirits which you should know before investing here.
But finally it’s the future, not the past, which will determine how well the owners of this business fare. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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