Super Retail Group Limited's (ASX:SUL) 7.1% gain last week benefited both individual investors who own 41% as well as insiders

editorial-team@simplywallst.com (Simply Wall St)

Sun, Oct 29, 2023, 8:34 PM 4 min read

A look at the shareholders of Super Retail Group Limited (ASX:SUL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched AU$2.9b last week, while insiders who own 30% also benefitted.

Let's delve deeper into each type of owner of Super Retail Group, beginning with the chart below.

View our latest analysis for Super Retail Group

ownership-breakdown — ASX:SUL Ownership Breakdown October 30th 2023

What Does The Institutional Ownership Tell Us About Super Retail Group?

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 Super Retail Group 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. 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 Super Retail Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — ASX:SUL Earnings and Revenue Growth October 30th 2023

Super Retail Group is not owned by hedge funds. The company's largest shareholder is Reginald Rowe, with ownership of 28%. Challenger Limited is the second largest shareholder owning 5.0% of common stock, and Alphinity Investment Management Pty Ltd. holds about 4.9% of the company stock.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Super Retail Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems insiders own a significant proportion of Super Retail Group Limited. Insiders own AU$862m worth of shares in the AU$2.9b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Super Retail Group. 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. To that end, you should learn about the 2 warning signs we've spotted with Super Retail Group (including 1 which is a bit concerning) .

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.