Which type of shareholder owns the most shares of Ritchie Bros.? Auctioneers Incorporated (NYSE: RBA)?
Every investor in Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) should know the most powerful shareholder groups. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that were previously publicly owned tend to have less insider ownership.
Ritchie Bros. Auctioneers has a market cap of US$6.5 billion, so it’s too big to fly under the radar. We expect institutions and retail investors to own part of the business. Looking at our ownership group data (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 Ritchie Bros. Auctioners.
What does institutional ownership tell us about Ritchie Bros.? Auctioners?
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.
We can see that Ritchie Bros. Auctioneers has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the past revenue trajectory of Ritchie Bros. Auctioneers, (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 probably heavily influence board decisions. Hedge funds don’t have a lot of shares in Ritchie Bros. Auctioners. The company’s largest shareholder is the Massachusetts Financial Services Company, with a 7.8% stake. For context, the second largest shareholder owns approximately 5.1% of the outstanding shares, followed by 5.0% ownership by the third largest shareholder.
After digging a little deeper, we found that the top 14 held a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.
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 a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider owned by Ritchie Bros. auctioneers
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own less than 1% of Ritchie Bros. Auctioneers Incorporated. It’s a big company, so even a small proportionate interest can create alignment between the board and shareholders. In this case, the insiders hold $7.0 million worth of shares. Good to see board members holding stock, but might be worth checking out if these insiders bought.
General public property
With a 12% stake, the general public, consisting mainly of individual investors, has some influence over Ritchie Bros. Auctioners. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
It is always useful to think about the different groups that own shares in a company. But to better understand Ritchie Bros. Auctioneers, we have to consider many other factors. To this end, you should be aware of the 3 warning signs we spotted with Ritchie Bros. auctioneers .
But finally it’s the future, not the past, which will determine the performance of the owners of this company. That’s why we think it’s 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 using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.