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Star Entertainment Group’s significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 12 investors have a majority stake in the company with 50% ownership
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Recent purchases by insiders
A look at the shareholders of The Star Entertainment Group Limited (ASX:SGR) can tell us which group is most powerful. We can see that individual investors own the lion’s share in the company with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 29% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let’s delve deeper into each type of owner of Star Entertainment Group, beginning with the chart below.
See our latest analysis for Star Entertainment Group
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Star Entertainment Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Star Entertainment Group’s earnings history below. Of course, the future is what really matters.
Star Entertainment Group is not owned by hedge funds. Bruce Mathieson is currently the company’s largest shareholder with 10% of shares outstanding. With 6.5% and 5.4% of the shares outstanding respectively, Xingchun Wang and JPMorgan Chase & Co, Brokerage and Securities Investments are the second and third largest shareholders.
A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership 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 in some circumstances.
It seems insiders own a significant proportion of The Star Entertainment Group Limited. Insiders own AU$55m worth of shares in the AU$315m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Star Entertainment Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
We can see that Private Companies own 4.7%, of the shares on issue. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
We can see that public companies hold 6.0% of the Star Entertainment Group shares on issue. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we’ve identified 2 warning signs for Star Entertainment Group (1 doesn’t sit too well with us) that you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.