Is Aristocrat Leisure Limited (ASX: ALL) popular among institutions?
If you want to know who really controls Aristocrat Leisure Limited (ASX: ALL) then you will need to look at the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously owned by the state tend to have fewer insiders.
With a market capitalization of A $ 30 billion, Aristocrat Leisure is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Aristocrat Leisure.
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What does institutional ownership tell us about aristocratic hobbies?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
Aristocrat Leisure already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. 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 Aristocrat Leisure’s historical income and income 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 Aristocrat Leisure. Our data shows that BlackRock, Inc. is the largest shareholder with 6.0% of the shares outstanding. In comparison, the second and third shareholders hold around 5.1% and 4.8% of the capital.
Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of Aristocrat Leisure
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own less than 1% of Aristocrat Leisure Limited in their own name. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own AU $ 26 million in stock. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
The general public has a substantial 54% stake in Aristocrat Leisure, which suggests that it is quite a popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
Owned by a private company
Our data indicates that private companies own 11% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. For example, we have identified 2 warning signs for Aristocrat Leisure that you need to be aware of.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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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