Catapult Sports Ltd's (ASX:CAT) 10.0% loss last week hit both individual investors who own 44% as well as institutions

Key Insights

• Significant control over Catapult Sports by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 19 investors have a majority stake in the company with 50% ownership
• 14% of Catapult Sports is held by insiders

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A look at the shareholders of Catapult Sports Ltd (ASX:CAT) can tell us which group is most powerful. The group holding the most number of shares in the company, around 44% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 10.0% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 40% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Catapult Sports.

View our latest analysis for Catapult Sports

What Does The Institutional Ownership Tell Us About Catapult Sports?

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 companies to have some institutions on the register, especially if they are growing.

Catapult Sports already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Catapult Sports' historic earnings and revenue below, but keep in mind there's always more to the story.

Catapult Sports is not owned by hedge funds. The company's largest shareholder is Northcape Capital Pty Limited, with ownership of 6.4%. With 5.8% and 5.2% of the shares outstanding respectively, Igor van de Griendt and Moelis Australia Asset Management Ltd are the second and third largest shareholders. Igor van de Griendt, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Will Lopes directly holds 0.5% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Catapult Sports

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Catapult Sports Ltd. It has a market capitalization of just AU$1.3b, and insiders have AU$176m 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

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Catapult Sports. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Take risks for example - Catapult Sports has 1 warning sign we think you should be aware of.

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.

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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.