With 42% of the capital, Foresight Group Holdings Limited (LON:FSG) seems to have captured the interest of institutional investors

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If you want to know who actually controls Foresight Group Holdings Limited (LON:FSG), then you will need to look at the composition of its share register. The group holding the largest number of company shares, around 42% to be precise, are institutions. In other words, the group faces the maximum upside potential (or downside risk).

Since institutional owners have a huge pool of resources and liquidity, their investment decisions tend to carry a lot of weight, especially with individual investors. Therefore, having a considerable amount of institutional money invested in a business is often considered a desirable trait.

Let’s dive deeper into each type of Foresight Group Holdings owner, starting with the table below.

See our latest analysis for Foresight Group Holdings

distribution of property

What does institutional ownership tell us about Foresight Group Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We can see that Foresight Group Holdings has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Foresight Group Holdings’ past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth

earnings-and-revenue-growth

Foresight Group Holdings is not owned by hedge funds. From our data, we deduce that the main shareholder is Bernard Fairman (who also holds the title of Top Key Executive) with 28% of the outstanding shares. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. Meanwhile, the second and third largest shareholders hold 6.8% and 5.8% of the outstanding shares respectively.

Looking further, we found that 50% of the shares are held by the top 5 shareholders. In other words, these shareholders have a say in the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Foresight Group Holdings

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in Foresight Group Holdings Limited. Insiders have a £183m stake in the £437m business. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, who are usually individual investors, hold a 16% stake in Foresight Group Holdings. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Foresight Group Holdings, we need to consider many other factors. Be aware that Foresight Group Holdings displays 2 warning signs in our investment analysis you should know…

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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