key insights
-
Significant control over premium investments by private companies means the public has more power to influence management and governance decisions
-
Top 3 shareholders own 52% of the company
-
29% of Premier Investments is owned by institutional investors
Every investor in Premier Investments Limited (ASX:PMV) should be aware of the most powerful shareholder groups. We can see that private companies own 37% of his shares, making up the majority. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Financial institutions, which own 29%, are under pressure after their market capitalization fell to A$4.8 billion last week, while private companies suffered the most losses.
Let’s take a closer look to see what the different types of shareholders can tell us about Premier Investments.
Check out our latest analysis for Premier Investments.
What does institutional ownership tell us about Premier Investments?
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 Premier Investment Company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Premier Investments’ historic earnings and revenue below, but keep in mind there’s always more to the story.
Premier Investments is not owned by hedge funds. According to our data, Century Plaza Investments Pty. Ltd. is the largest shareholder with 37% of shares outstanding. On the other hand, the second and third largest shareholders hold about 7.9% of the stock and 7.3% of the stock.
After taking a closer look at the shareholder registry, we found that 3 of the top shareholders have a significant ownership stake in the company, with a 52% stake.
While researching 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 plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider Ownership of Premier Investments
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
Shareholders would probably be interested to know that insiders own shares in Premier Investments Limited. This is a big company, so it’s good to see this level of collaboration. Insiders own AU$417m worth of shares (at current prices). It’s good to see this level of investment by insiders. Here you can see if insiders have been buying recently.
Open to the public
The general public, usually retail investors, owns 26% of Premier Investments’ shares. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Private company ownership
We can see that Private companies own 37% of the shares outstanding. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
It’s always worth thinking about the different groups who own shares in a company. However, to better understand Premier Investments, you need to consider many other factors.
Many people find it convenient This is to find out more about how a company has performed in the past.You can access this Detailed graph Analysis of past earnings, revenue, and cash flow.
after all the future is most important.You 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.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be 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.
