If you want to know who really controls Amcil Limited (ASX:AMH), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. Amcil is not a large company by global standards. It has a market capitalization of AU$312m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about Amcil. Check out our latest analysis for Amcil ownership-breakdown What Does The Institutional Ownership Tell Us About Amcil? 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. Institutions have a very small stake in Amcil. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most. earnings-and-revenue-growth We note that hedge funds don't have a meaningful investment in Amcil. Bruce Teele is currently the largest shareholder, with 18% of shares outstanding. With 3.8% and 1.8% of the shares outstanding respectively, Djerriwarrh Investments Limited and Terrence Campbell are the second and third largest shareholders. A deeper look at our ownership data shows that the top 24 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. Insider Ownership Of Amcil 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. 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. It seems insiders own a significant proportion of Amcil Limited. Insiders own AU$79m worth of shares in the AU$312m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling. General Public Ownership The general public -- mostly retail investors -- own 60% of Amcil. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. Private Company Ownership It seems that Private Companies own 4.6%, of the Amcil stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. 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. For instance, we've identified 3 warning signs for Amcil (1 is a bit unpleasant) that you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies. 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. This article by Simply Wall St is general in nature. 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. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email [email protected].
Is Amcil Limited's (ASX:AMH) Shareholder Ownership Skewed Towards Insiders?
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