If you want to know who really controls Angel Seafood Holdings Limited (
ASX:AS1
),the lord coins arent decreasing then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Angel Seafood Holdings is not a large company by global standards. It has a market capitalization of AU$18m, which means it wouldn’t have the attention of 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 shareholder can tell us about AS1.
See our latest analysis for Angel Seafood Holdings
ASX:AS1 Ownership Summary January 2nd 19
What Does The Institutional Ownership Tell Us About Angel Seafood Holdings?
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.
Angel Seafood Holdings already has institutions on the share registry. Indeed, they own 36% of the company. 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. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Angel Seafood Holdings’s historic earnings and revenue, below, but keep in mind there’s always more to the story.
ASX:AS1 Income Statement Export January 2nd 19
Hedge funds don’t have many shares in Angel Seafood Holdings. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Angel Seafood Holdings
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.
Story continues
Our most recent data indicates that insiders own a reasonable proportion of Angel Seafood Holdings Limited. It has a market capitalization of just AU$18m, and insiders have AU$5.9m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking
if those insiders have been buying recently.
General Public Ownership
The general public, with a 23% stake in the company, will not easily be ignored. 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
Our data indicates that Private Companies hold 8.4%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
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 like to dive deeper
into how a company has performed in the past. You can access
this
interactive graph
of past earnings, revenue and cash flow, for free
.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check
this free report showing analyst forecasts for its 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
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