With 78% ownership, Admiral Group plc (LON:ADM) boasts of strong institutional backing




  • In Business
  • 2022-11-28 05:46:35Z
  • By Simply Wall St.
 

A look at the shareholders of Admiral Group plc (LON:ADM) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 78% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot 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 Admiral Group.

Check out our latest analysis for Admiral Group

What Does The Institutional Ownership Tell Us About Admiral 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.

We can see that Admiral Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Admiral Group's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Admiral Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Henry Engelhardt with 8.5% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.7% and 5.5%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Admiral Group

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. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders do own shares in Admiral Group plc. The insiders have a meaningful stake worth UK£551m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Admiral Group you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Owning 40% in Anglo Asian Mining PLC (LON:AAZ) means that insiders are heavily invested in the company
Owning 40% in Anglo Asian Mining PLC (LON:AAZ) means that insiders are heavily invested in the company's future

To get a sense of who is truly in control of Anglo Asian Mining PLC ( LON:AAZ ), it is important to understand the...

The past year for Oxford Biomedica (LON:OXB) investors has not been profitable
The past year for Oxford Biomedica (LON:OXB) investors has not been profitable

Oxford Biomedica plc ( LON:OXB ) shareholders should be happy to see the share price up 26% in the last quarter. But...

Formosa Prosonic Industries Berhad (KLSE:FPI) stock most popular amongst individual investors who own 42%, while public companies hold 29%
Formosa Prosonic Industries Berhad (KLSE:FPI) stock most popular amongst individual investors who own 42%, while public companies hold 29%

Every investor in Formosa Prosonic Industries Berhad ( KLSE:FPI ) should be aware of the most powerful shareholder...

While insiders own 20% of Tamboran Resources Limited (ASX:TBN), individual investors are its largest shareholders with 24% ownership
While insiders own 20% of Tamboran Resources Limited (ASX:TBN), individual investors are its largest shareholders with 24% ownership

If you want to know who really controls Tamboran Resources Limited ( ASX:TBN ), then you'll have to look at the makeup...

Galena Mining Limited
Galena Mining Limited's (ASX:G1A) largest shareholders are individual investors with 45% ownership, insiders own 26%

A look at the shareholders of Galena Mining Limited ( ASX:G1A ) can tell us which group is most powerful. We can see...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business