key insights
Investors in Pinnacle Investment Management Group Limited (ASX:PNI) should be aware of the most powerful shareholder groups. With a stake of 41%, individual insiders hold the largest number of shares in the company. In other words, this group stands to gain the most (or lose the most) from investing in the company.
Pinnacle Investment Management Group insiders therefore have a lot at stake, and any decisions they make about the company’s future will be significant from a financial perspective.
The chart below zooms in on the different ownership groups for Pinnacle Investment Management Group.
See our latest analysis for Pinnacle Investment Management Group
What can institutional ownership tell us about Pinnacle Investment Management Group?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Pinnacle Investment Management Group. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Pinnacle Investment Management Group, (below). Of course, keep in mind that there are other factors to consider as well.
Note that hedge funds don’t have a large investment in Pinnacle Investment Management Group. Looking at our data, we can see that the largest shareholder is CEO Ian McCune with 18% of shares outstanding. By comparison, the second and third largest shareholders hold about 9.3% and 5.3% of the stock.
Upon further investigation, we found that more than half of the company’s shares are owned by the top 8 shareholders. This suggests that the interests of large shareholders are balanced to some extent by small shareholders.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are a fair number of analysts covering the stock, which makes it very easy to look up expected growth rates.
Pinnacle Investment Management Group Insider Ownership
The definition of an insider varies slightly from country to country, but always includes members of the board of directors. A company’s management reports to a board of directors, which must represent the interests of shareholders. In particular, top-level managers may themselves be members of the board of directors.
While most view insider ownership as a positive because it can indicate the board is well aligned with other shareholders, in some cases it can lead to too much power being concentrated in one group.
Our latest data shows that insiders own a significant proportion of Pinnacle Investment Management Group Limited shares. Insiders say he owns AU$1 billion worth of shares in the AU$2.6 billion company. This is very meaningful. Many would say this shows good alignment with shareholders, especially for a company of this size. Click here to see if insiders have been buying or selling.
General public property
The general public, usually retail investors, owns 33% of Pinnacle Investment Management Group’s shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. Taking risks as an example, Pinnacle Investment Management Group is undertaking the following initiatives: 1 warning sign I think you should know.
Finally the future is most importantYou can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
