With 89% ownership of the shares, James Fisher and Sons plc (LON:FSJ) is heavily dominated by institutional owners

Simply Wall St

Thu, Mar 30, 2023, 1:14 AM 4 min read

Key Insights

Significantly high institutional ownership implies James Fisher and Sons' stock price is sensitive to their trading actions
51% of the business is held by the top 5 shareholders
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls James Fisher and Sons plc (LON:FSJ), then you'll have to look at the makeup of its share registry. With 89% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of James Fisher and Sons, beginning with the chart below.

View our latest analysis for James Fisher and Sons

ownership-breakdown — LSE:FSJ Ownership Breakdown March 30th 2023

What Does The Institutional Ownership Tell Us About James Fisher and Sons?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in James Fisher and Sons. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 James Fisher and Sons' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — LSE:FSJ Earnings and Revenue Growth March 30th 2023

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in James Fisher and Sons. Looking at our data, we can see that the largest shareholder is The Sir John Fisher Foundation, Endowment Arm with 25% of shares outstanding. Schroder Investment Management Limited is the second largest shareholder owning 9.6% of common stock, and Aberforth Partners LLP holds about 5.9% of the company stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of James Fisher and Sons

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.

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 James Fisher and Sons plc insiders own under 1% of the company. It appears that the board holds about UK£39k worth of stock. This compares to a market capitalization of UK£147m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in James Fisher and Sons. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for James Fisher and Sons you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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