What types of shareholders do Fisher & Paykel Healthcare Corporation Limited (NZSE: FPH) have?

Every investor in Fisher & Paykel Healthcare Corporation Limited (NZSE: FPH) should know about the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.

Fisher & Paykel Healthcare is a fairly large company. It has a market capitalization of NZ $ 19 billion. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Fisher & Paykel Healthcare.

Check out our latest review for Fisher & Paykel Healthcare

Distribution of the NZSE property: FPH January 8, 2022

What does institutional ownership tell us about Fisher & Paykel Healthcare?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Fisher & Paykel Healthcare has institutional investors; and they own a good portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Fisher & Paykel Healthcare’s historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growth
NZSE: FPH Profits and Revenue Growth January 8, 2022

Hedge funds don’t have a lot of shares in Fisher & Paykel Healthcare. Looking at our data, we can see that the largest shareholder is JPMorgan Chase & Co, Private Banking and Investment Banking Investments with 10% of the shares outstanding. BlackRock, Inc. is the second largest shareholder holding 6.5% of the common shares, and First Sentier Investors (Australia) IM Ltd owns approximately 5.4% of the shares of the company.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small holders where no shareholder has a majority.

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. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.

Insider Property of Fisher & Paykel Healthcare

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

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 of Fisher & Paykel Healthcare Corporation Limited own less than 1% of the company. Being so big, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own NZ $ 66 million in stock. Arguably recent purchases and sales are equally important to consider. You can click here to see if any Insiders have bought or sold.

General public property

The general public, who are typically individual investors, own a substantial 53% stake in Fisher & Paykel Healthcare, suggesting that this is a fairly popular stock. This property size gives mainstream investors some collective power. They can and probably do influence decisions about executive compensation, dividend policies and proposed business acquisitions.

Next steps:

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.

Many find it useful to take an in-depth look at how a business has performed in the past. You can access this detailed graphic past earnings, income and cash flow.

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.

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 any stock 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 any of the stocks mentioned.


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