Given the large stake in the stock by institutions, PPHE Hotel Group's stock price might be vulnerable to their trading decisions
51% of the business is held by the top 2 shareholders
Insiders have bought recently
A look at the shareholders of PPHE Hotel Group Limited (LON:PPH) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal 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 take a closer look to see what the different types of shareholders can tell us about PPHE Hotel Group.
See our latest analysis for PPHE Hotel Group
LSE:PPH Ownership Breakdown March 17th 2024
What Does The Institutional Ownership Tell Us About PPHE Hotel Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
PPHE Hotel Group already has institutions on the share registry. Indeed, they own a respectable stake in 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. 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 PPHE Hotel Group's earnings history below. Of course, the future is what really matters.
LSE:PPH Earnings and Revenue Growth March 17th 2024
We note that hedge funds don't have a meaningful investment in PPHE Hotel Group. Red Sea Group is currently the largest shareholder, with 29% of shares outstanding. Boris Ivesha is the second largest shareholder owning 22% of common stock, and Aroundtown SA holds about 10% of the company stock. Boris Ivesha, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 PPHE Hotel Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 insiders maintain a significant holding in PPHE Hotel Group Limited. Insiders have a UK£144m stake in this UK£562m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 21% stake in PPHE Hotel Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
It appears to us that public companies own 10% of PPHE Hotel Group. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand PPHE Hotel Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for PPHE Hotel Group you should be aware of, and 1 of them is significant.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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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.
