What types of shareholders make up the Alpha HPA Limited share register (ASX: A4N)?

The large shareholder groups of Alpha HPA Limited (ASX: A4N) have power over the company. Insiders often own a large number of younger and smaller companies, while large companies tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is run by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it can suggest that the management is owner focused.

With a market cap of A $ 405 million, Alpha HPA is a small cap stock, so it might not be well known to many institutional 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 each type of owner to learn more about Alpha HPA.

See our latest review for Alpha HPA

ASX: distribution of ownership of A4N on May 22, 2021

What does institutional ownership tell us about Alpha HPA?

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. You would expect most businesses to have institutions listed, especially if they are growing.

As you can see, institutional investors hold a significant stake in Alpha HPA. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If multiple institutions change their perspective on a stock at the same time, you could see the stock price drop quickly. So it’s worth looking at Alpha HPA’s earnings history below. Of course, it’s the future that really matters.

profit and revenue growth
ASX: A4N Profits and Revenue Growth May 22, 2021

It appears that hedge funds hold 10% of Alpha HPA shares. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Looking at our data we can see that the main shareholder is Regal Funds Management Pty Limited with 10% of the shares outstanding. By comparison, the second and third largest shareholders hold around 9.7% and 5.4% of the shares. In addition, we found that Rimas Kairaitis, the CEO, owns 1.0% of the shares attributed to his name.

Looking at the register of shareholders, we can see that 50% of the property is controlled by the 14 major shareholders, which means that no single shareholder has a controlling interest in the property.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some analyst coverage, the company is probably not widely covered. So that might get more attention, on the track.

Alpha HPA Insider Ownership

The definition of company insiders can be subjective and vary by jurisdiction. Our data reflects individual insiders, at the very least capturing board members. Management ultimately responds to the advice. However, it is not uncommon for managers to be members of the executive board, 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 most recent data indicates that insiders own a reasonable proportion of Alpha HPA Limited. The insiders have an A $ 99 million stake in the A $ 405 million company. It’s great to see insiders so invested in the business. It might be worth checking out if these insiders have bought recently.

General public property

The general public has a 46% stake in Alpha HPA. This size of ownership, while considerable, may not be enough to change company policy if the decision is not synchronized with other large shareholders.

Private company ownership

We note that private companies hold 8.3% of the shares issued. It may be worth taking a closer look. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

While it is worth considering the different groups that own a business, other factors are even more important. Concrete example: we have spotted 4 warning signs for Alpha HPA you have to be aware of it.

But finally this is the future, not the past, which will determine the performance of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

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 in which the balance sheet is dated. This may not be consistent with figures in annual reports.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim 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 information. Simply Wall St has no position in any of the stocks mentioned.
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