Insiders own 36% of Intuitive Investments Group Plc (LON:IIG) shares but retail investors control 47% of the company

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Key Insights

  • Intuitive Investments Group’s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

  • 50% of the business is held by the top 11 shareholders

  • Insiders own 36% of Intuitive Investments Group

A look at the shareholders of Intuitive Investments Group Plc (LON:IIG) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual insiders make up 36% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let’s delve deeper into each type of owner of Intuitive Investments Group, beginning with the chart below.

Check out our latest analysis for Intuitive Investments Group

ownership-breakdown

What Does The Institutional Ownership Tell Us About Intuitive Investments Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Intuitive Investments Group does have institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Intuitive Investments Group’s historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth

Intuitive Investments Group is not owned by hedge funds. Frank Tong is currently the company’s largest shareholder with 18% of shares outstanding. Entain Plc is the second largest shareholder owning 11% of common stock, and Peter Kershaw holds about 8.2% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Intuitive Investments Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Intuitive Investments Group Plc. Insiders have a UK£109m stake in this UK£303m business. 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.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Intuitive Investments Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 11% of the Intuitive Investments 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 4 warning signs for Intuitive Investments Group you should be aware of, and 3 of them shouldn’t be ignored.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.