Yahoo Finance Pinnacle Investment Management Group Limited's (ASX:PNI) most bullish insider is CEO Ian Macoun, and their holdings value went up by 9.6% last week
Key Insights
Significant insider control over Pinnacle Investment Management Group implies vested interests in company growth
51% of the business is held by the top 8 shareholders
Institutions own 26% of Pinnacle Investment Management Group
To get a sense of who is truly in control of Pinnacle Investment Management Group Limited (ASX:PNI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 41% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, insiders scored the highest last week as the company hit AU$1.9b market cap following a 9.6% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Pinnacle Investment Management Group.
Check out our latest analysis for Pinnacle Investment Management Group
What Does The Institutional Ownership Tell Us About Pinnacle Investment Management Group?
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.
As you can see, institutional investors have a fair amount of stake in Pinnacle Investment Management Group. 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 Pinnacle Investment Management Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Pinnacle Investment Management Group is not owned by hedge funds. With a 18% stake, CEO Ian Macoun is the largest shareholder. Stephen R. Wilson is the second largest shareholder owning 9.4% of common stock, and Ethical Partners Funds Management holds about 5.4% of the company stock.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Pinnacle Investment Management Group
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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 most recent data indicates that insiders own a reasonable proportion of Pinnacle Investment Management Group Limited. It has a market capitalization of just AU$1.9b, and insiders have AU$788m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 32% stake in Pinnacle Investment Management Group. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Pinnacle Investment Management Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for Pinnacle Investment Management Group that 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
