Yahoo Finance With 72% ownership in Freedom Holding Corp. (NASDAQ:FRHC), insiders continue to have the largest holding even though they have sold shares recently
Key Insights
Insiders appear to have a vested interest in Freedom Holding's growth, as seen by their sizeable ownership
71% of the company is held by a single shareholder (Timur Turlov)
A look at the shareholders of Freedom Holding Corp. (NASDAQ:FRHC) can tell us which group is most powerful. With 72% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And insiders own the top position in the company’s share registry despite recent sales.
Let's take a closer look to see what the different types of shareholders can tell us about Freedom Holding.
View our latest analysis for Freedom Holding
What Does The Institutional Ownership Tell Us About Freedom Holding?
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.
Less than 5% of Freedom Holding is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Freedom Holding. Looking at our data, we can see that the largest shareholder is the CEO Timur Turlov with 71% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. For context, the second largest shareholder holds about 0.2% of the shares outstanding, followed by an ownership of 0.2% by the third-largest shareholder. Interestingly, the second-largest shareholder, Askar Tashtitov is also President, again, pointing towards strong insider ownership amongst the company's top shareholders.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Freedom Holding
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.
Our information suggests that insiders own more than half of Freedom Holding Corp.. This gives them effective control of the company. That means insiders have a very meaningful US$3.4b stake in this US$4.8b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.
General Public Ownership
With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Freedom Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
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 be aware of the 3 warning signs we've spotted with Freedom Holding .
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
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