Canada markets open in 51 minutes
  • S&P/TSX

    20,101.38
    -389.63 (-1.90%)
     
  • S&P 500

    3,923.68
    -165.17 (-4.04%)
     
  • DOW

    31,490.07
    -1,164.52 (-3.57%)
     
  • CAD/USD

    0.7798
    +0.0038 (+0.49%)
     
  • CRUDE OIL

    106.84
    -2.75 (-2.51%)
     
  • BTC-CAD

    37,731.79
    -725.14 (-1.89%)
     
  • CMC Crypto 200

    654.12
    -16.56 (-2.47%)
     
  • GOLD FUTURES

    1,830.30
    +14.40 (+0.79%)
     
  • RUSSELL 2000

    1,774.85
    -65.45 (-3.56%)
     
  • 10-Yr Bond

    2.8210
    -0.0650 (-2.25%)
     
  • NASDAQ futures

    11,798.25
    -137.25 (-1.15%)
     
  • VOLATILITY

    32.04
    +5.94 (+22.76%)
     
  • FTSE

    7,277.02
    -161.07 (-2.17%)
     
  • NIKKEI 225

    26,402.84
    -508.36 (-1.89%)
     
  • CAD/EUR

    0.7401
    -0.0012 (-0.16%)
     

What Is The Ownership Structure Like For PWR Holdings Limited (ASX:PWH)?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in PWR Holdings Limited (ASX:PWH) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of AU$923m, PWR Holdings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about PWR Holdings.

View our latest analysis for PWR Holdings

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About PWR Holdings?

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 PWR Holdings 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 PWR Holdings' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in PWR Holdings. Looking at our data, we can see that the largest shareholder is the CEO Kees Weel with 20% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of PWR Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 PWR Holdings Limited. It has a market capitalization of just AU$923m, and insiders have AU$220m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PWR Holdings. 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.

Private Company Ownership

It seems that Private Companies own 11%, of the PWR Holdings stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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.

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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting