What type of shareholders own the most Scentre Group (ASX: SCG) shares?
Every investor in Scentre Group (ASX: SCG) needs to know the most powerful shareholder groups. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Scentre Group is a pretty big company. It has a market capitalization of AU $ 15 billion. Normally, institutions would own a significant share of a company of this size. In the graph below, we can see that institutional investors have bought into the company. Let’s dig deeper into each type of owner, to find out more about the Scentre Group.
Check out our latest analysis for Scentre Group
What does institutional ownership tell us about Scentre Group?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors have a significant share of the capital of Scentre Group. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Scentre Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. The Scentre Group is not owned by hedge funds. The company’s main shareholder is BNP Paribas Arbitrage Sa, Asset Management Arm, with a 12% stake. In comparison, the second and third shareholders hold around 11% and 10% of the capital.
We further researched and found that 6 of the major shareholders represent around 55% of the register, which implies that in addition to the major shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of the Scentre group
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 most recent data indicates that insiders own less than 1% of Scentre Group. Since this is a large company, we would expect insiders to own only a small percentage. But it’s worth noting that they own A $ 36 million worth of stock. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
With a 28% stake, the general public has some influence over Scentre Group. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take risks for example – Scentre Group has 3 warning signs (and 1 that can’t be ignored) we think you should be aware of.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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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 documents. Simply Wall St has no position in the mentioned stocks.
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