Nasdaq
华尔街日报Seeing Machines Limited's (LON:SEE) largest shareholders are retail investors who were rewarded as market cap surged UK£48m last week
Key Insights
- Seeing Machines' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- 48% of the business is held by the top 16 shareholders
- Institutional ownership in Seeing Machines is 23%
A look at the shareholders of Seeing Machines Limited (LON:SEE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, retail investors were the biggest beneficiaries of last week’s 19% gain.
Let's take a closer look to see what the different types of shareholders can tell us about Seeing Machines.
Check out our latest analysis for Seeing Machines
What Does The Institutional Ownership Tell Us About Seeing Machines?
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 Seeing Machines does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Seeing Machines' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Seeing Machines. The company's largest shareholder is Mitsubishi Electric Corporation, with ownership of 20%. 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.
A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Seeing Machines
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Seeing Machines Limited insiders own under 1% of the company. It has a market capitalization of just UK£294m, and the board has only UK£1.9m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 52% stake in Seeing Machines, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Public Company Ownership
Public companies currently own 24% of Seeing Machines stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Seeing Machines better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Seeing Machines you should know about.
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.