Every investor in In The Style Group Plc (LON: TO BE) should be aware of the most powerful groups of shareholders. Institutions often own stakes in more established companies, while it is not uncommon for insiders to own some smaller companies. I really like to see at least a little bit of inside property. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
The Style Group is a smaller company with a market capitalization of £ 124 million, so it may still be under the radar of many institutional investors. A look at our owner group data (below) shows that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can tell us about In The Style Group.
Check out our latest analysis for In The Style Group
What does institutional ownership in Style Group tell us?
Institutional investors often compare their own returns to the returns of a frequently tracked index. As a result, they typically consider buying larger companies that are included in the relevant benchmark index.
We can see that In The Style Group has institutional investors; and they hold a good chunk of the company’s stock. This suggests some credibility among professional investors. But we cannot rely on that alone, because institutions sometimes make bad investments, as everyone does. If several institutions change their minds about a share at the same time, the share price could fall quickly. So it’s worth checking out In The Style Group’s earnings history below. Of course, the future is what really matters.
Hedge funds don’t have a lot of stakes in In The Style Group. The company’s CEO, Adam Frisby, is the largest shareholder with 23% of the shares outstanding. The second and third largest shareholders now hold 14% and 13% of the outstanding shares, respectively.
After some more research, we found that the top 3 shareholders collectively control more than half of the company’s stock, which means they have significant influence over the company’s decisions.
The story goes on
While studying the institutional ownership of a company can add value to your research, researching analyst recommendations to get a deeper understanding of a stock’s expected performance is also good practice. There are some analyst reports on the stock, but it could get more prominent over time.
In The Style Group’s insider property
The definition of an insider can vary slightly from country to country, but board members always count. The top management runs the business, but the CEO will be accountable to the board even if he or she is a member of the board.
I generally think insider ownership is a good thing. In some cases, however, it makes it difficult for other shareholders to hold the board responsible for decisions.
Our latest data shows that Insiders own a fair stake in In The Style Group Plc. Insiders own £ 35m worth of shares in the £ 124m company. It’s great to see Insiders have invested so much in the business. It might be worth checking out if these insiders have bought recently.
General public property
The general public, with a 21% stake in the company, will not be easily ignored. While this size of ownership is substantial, it may not be enough to change company policy if the decision does not coincide with other major shareholders.
Private equity ownership
With a 14% stake, private equity firms could influence the board of In The Style Group. Some investors might be encouraged by this, as private equity can sometimes promote strategies that help the market see the company’s worth. Alternatively, these holders could exit the investment after the IPO.
I find it very interesting to see who exactly owns a company. But to really gain insight we need to consider other information as well. For example, consider the ubiquitous specter of investment risk. We identified 1 warning sign with In The Style Group , and understanding them should be part of your investment process.
If you’re like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check it out This free report shows analyst projections for the future.
Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual financial statements.
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. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
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