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Every investor in Aristocrat Leisure Limited (ASX:ALL) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
Aristocrat Leisure has a market capitalization of AU$20b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about ALL.
View our latest analysis for Aristocrat Leisure
What Does The Institutional Ownership Tell Us About Aristocrat Leisure?
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.
Aristocrat Leisure already has institutions on the share registry. Indeed, they own 30% of the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Aristocrat Leisure's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Aristocrat Leisure. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Aristocrat Leisure
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Aristocrat Leisure Limited insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own AU$30m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.