What you need to know about the investor mix of Wisr Limited (ASX: WZR)
If you want to know who really controls Wisr Limited (ASX: WZR), then you will have to look at the composition of its share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
Wisr is not a big company by global standards. It has a market cap of A $ 369 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s dig deeper into each type of owner, to learn more about Wisr.
See our latest analysis for Wisr
What does institutional ownership tell us about Wisr?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We see that the Wisr has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Wisr’s historical income and earnings below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have a significant investment in Wisr. Adcock Private Equity Pty Ltd is currently the largest shareholder, with 13% of the shares outstanding. In comparison, the second and third shareholders hold around 6.4% and 4.1% of the capital. In addition, CEO Anthony Nantes owns 3.6% of the company’s shares.
Our studies suggest that the top 16 shareholders collectively control less than half of the shares of the company, which means that the shares of the company are widely disseminated and there is no dominant shareholder.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. The title is covered by analysts, but it could become even more famous over time.
Wisr insider property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It appears that insiders own a significant proportion of Wisr Limited. The insiders have an A $ 45 million stake in the A $ 369 million company. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.
General public property
The general public has a substantial 58% stake in Wisr, which suggests that it is quite a popular stock. This size of property gives mainstream investors some collective power. They can and probably do influence decisions about executive compensation, dividend policies and proposed business acquisitions.
With a 13% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
Owned by a private company
Our data indicates that private companies own 7.5% of the company’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
It’s always worth thinking about the different groups that own shares in a company. But to better understand the Wisr, there are many other factors that we need to take into account. For example, we have identified 1 warning sign for Wisr that you need to be aware of.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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