To get a sense of who is truly in control of Adbri Limited (ASX:ABC), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, private companies make up 42% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of Adbri.
View our latest analysis for Adbri
What Does The Institutional Ownership Tell Us About Adbri?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Adbri does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Adbri, (below). Of course, keep in mind that there are other factors to consider, too.
Adbri is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Barro Properties Pty Ltd with 33% of shares outstanding. The second and third largest shareholders are The Vanguard Group, Inc. and Barro Group Pty Ltd., with an equal amount of shares to their name at 5.0%.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Adbri
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.