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A look at the shareholders of Fuller, Smith & Turner P.L.C. (LON:FSTA) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Fuller Smith & Turner is not a large company by global standards. It has a market capitalization of UK£549m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about FSTA.
Check out our latest analysis for Fuller Smith & Turner
What Does The Institutional Ownership Tell Us About Fuller Smith & Turner?
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.
We can see that Fuller Smith & Turner does have institutional investors; and they hold 43% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Fuller Smith & Turner, (below). Of course, keep in mind that there are other factors to consider, too.
Fuller Smith & Turner is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Fuller Smith & Turner
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.
Shareholders would probably be interested to learn that insiders own shares in Fuller, Smith & Turner P.L.C.. It has a market capitalization of just UK£549m, and insiders have UK£24m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.