What Type Of Shareholders Own The Most Number of ReadyTech Holdings Limited (ASX:RDY) Shares?
If you want to know who really controls ReadyTech Holdings Limited (ASX: RDY), you need to look at the structure of the share registry. Institutions often own shares in more established companies, while it is not uncommon for insiders to own quite a bit of smaller companies. Warren Buffett said he likes "a company that has an enduring competitive advantage and is run by capable, owner-centric people." So it's nice to see inside ownership as it could suggest the management is owner driven.
With a market cap of AU $ 150 million, ReadyTech Holdings is a small-cap stock that many institutional investors may not be familiar with. Our analysis of ownership of the company below shows that institutions can be identified in the share register. Let's dig deeper into each type of owner to learn more about ReadyTech Holdings.
Check out our latest analysis for ReadyTech Holdings
Division of ownership
What does institutional ownership tell us about ReadyTech Holdings?
Many institutions measure their performance against an index that approximates the local market. Therefore, they tend to pay more attention to companies included in major indices.
We can see that ReadyTech Holdings has institutional investors; and they hold a good chunk of the company's stock. This implies that the analysts who work for these institutions have looked at the stock and like it. But just like everyone else, they could be wrong. If several institutions change their view of a share at the same time, the share price can fall quickly. It is therefore worth looking at ReadyTech Holdings' earnings history below. Of course, the future is what really matters.
Profit and sales growth
We find that hedge funds are not making a sensible investment in ReadyTech Holdings. Pemba Capital Partners Pty Limited is currently the company's largest shareholder with 42% of the issued shares. In context, the second largest shareholder holds around 11% of the shares issued, followed by the third largest shareholder of 5.0%. Marc Washbourne, the third largest shareholder, also happens to be a member of the board of directors.
To make our study more interesting, we found that the top 2 shareholders have a controlling stake in the company, meaning they are strong enough to influence the company's decisions.
While studying a company's institutional ownership can add value to your research, researching analyst recommendations to get a deeper understanding of a stock's expected performance is also a good practice. There's a little analyst coverage of the stock, but not much. So there is room for more reporting.
ReadyTech Holdings insider owned
The definition of insider can be subjective and varies between jurisdictions. Our data reflects individual insiders and at least includes board members. The top management runs the business, but the CEO responds to the board even if he's a member.
Most consider insider ownership to be a positive as it can indicate that the board of directors is well aligned with other shareholders. In some cases, however, too much power is centered on this group.
Our information suggests that insiders have a significant stake in ReadyTech Holdings Limited. Insiders have a stake of AU $ 18 million in this AU $ 150 million deal. I would say this shows the focus on shareholders, but it's worth noting that the company is still quite small. Some insiders may have started the company. You can click here to see if these Insiders bought or sold.
General public property
The general public owns 21% of ReadyTech Holdings. While this size of ownership is substantial, it may not be enough to change company policy if the decision is not synchronized with other major shareholders.
Private equity owner
Private equity firms own 42% of ReadyTech Holdings. This suggests that they can have an impact on important political decisions. Sometimes private equity lasts for the long term, but generally they have a shorter investment horizon and, as the name suggests, they don't invest much in public companies. After a while, they may try to sell and reinstall capital elsewhere.
Our data shows that private companies hold 6.6% of the company's shares. It might be worth investigating further. If related parties such as insiders have an interest in one of these private companies, this should be stated in the annual report. Private companies can also have a strategic interest in the company.
It is always worth thinking about the different groups that own shares in a company. However, to better understand ReadyTech Holdings, we need to consider many other factors. Note that ReadyTech Holdings shows two warning signs in our investment analysis. You should know about ...
If you're like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check out this free report, which has analyst forecast for the future.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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