Key Insights

Significant control over Seven West Media by retail investors implies that the general public has more power to influence management and governance-related decisions A total of 5 investors have a majority stake in the company with 52% ownership Insider ownership in Seven West Media is 21%

A look at the shareholders of Seven West Media Limited (ASX:SWM) can tell us which group is most powerful. With 33% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, public companies make up 23% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Seven West Media.

See our latest analysis for Seven West Media  ownership-breakdown

What Does The Institutional Ownership Tell Us About Seven West Media?

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.

As you can see, institutional investors have a fair amount of stake in Seven West Media. 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 Seven West Media's historic earnings and revenue below, but keep in mind there's always more to the story. earnings-and-revenue-growth

Seven West Media is not owned by hedge funds. Seven Group Holdings Limited is currently the largest shareholder, with 22% of shares outstanding. With 17% and 5.0% of the shares outstanding respectively, Kerry Stokes and Spheria Asset Management Pty Ltd are the second and third largest shareholders. Furthermore, CEO James Warburton is the owner of 1.6% of the company's shares.



Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 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 Seven West Media

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Seven West Media Limited. Insiders own AU$95m worth of shares in the AU$448m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can  click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Seven West Media. 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.

Public Company Ownership

It appears to us that public companies own 23% of Seven West Media. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Seven West Media better, we need to consider many other factors. To that end, you should learn about the  2 warning signs  we've spotted with Seven West Media (including 1 which can't be ignored) .

Ultimately the future is most important. You can access this freereport on analyst forecasts for the company.

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.