Latest news with #SmartgroupCorporationLtd
Yahoo
29-05-2025
- Business
- Yahoo
Smartgroup Corporation Ltd (ASX:SIQ) most popular amongst individual investors who own 47% of the shares, institutions hold 47%
The considerable ownership by individual investors in Smartgroup indicates that they collectively have a greater say in management and business strategy A total of 24 investors have a majority stake in the company with 50% ownership Insiders have bought recently AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you want to know who really controls Smartgroup Corporation Ltd (ASX:SIQ), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Meanwhile, institutions make up 47% of the company's shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. In the chart below, we zoom in on the different ownership groups of Smartgroup. See our latest analysis for Smartgroup 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. As you can see, institutional investors have a fair amount of stake in Smartgroup. 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. 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 Smartgroup's historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Smartgroup. Looking at our data, we can see that the largest shareholder is State Street Global Advisors, Inc. with 5.6% of shares outstanding. The second and third largest shareholders are Challenger Limited and Australian Retirement Trust Pty Ltd, with an equal amount of shares to their name at 5.2%. Additionally, the company's CEO Scott Wharton directly holds 1.9% of the total shares outstanding. A closer look at our ownership figures suggests that the top 24 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. 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. Our most recent data indicates that insiders own some shares in Smartgroup Corporation Ltd. As individuals, the insiders collectively own AU$49m worth of the AU$953m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Smartgroup. 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. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Smartgroup , and understanding them should be part of your investment process. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. 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) 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.
Business Insider
09-05-2025
- Business
- Business Insider
Smartgroup Corporation Ltd (STGXF) was downgraded to a Hold Rating at Bell Potter
Smartgroup Corporation Ltd (STGXF – Research Report) received a Hold rating and an A$8.50 price target from Bell Potter analyst Hayden Nicholson today. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Nicholson is a 3-star analyst with an average return of 8.6% and a 44.44% success rate. Smartgroup Corporation Ltd has an analyst consensus of Moderate Buy, with a price target consensus of $6.08. Based on Smartgroup Corporation Ltd's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $157.35 million and a net profit of $41.34 million. In comparison, last year the company earned a revenue of $134.99 million and had a net profit of $32.98 million Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STGXF in relation to earlier this year.
Yahoo
02-05-2025
- Business
- Yahoo
Those who invested in Smartgroup (ASX:SIQ) five years ago are up 117%
The simplest way to invest in stocks is to buy exchange traded funds. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Smartgroup Corporation Ltd (ASX:SIQ) share price is 54% higher than it was five years ago, which is more than the market average. In comparison, the share price is down 11% in a year. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Our free stock report includes 1 warning sign investors should be aware of before investing in Smartgroup. Read for free now. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Smartgroup achieved compound earnings per share (EPS) growth of 3.9% per year. This EPS growth is lower than the 9% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. This free interactive report on Smartgroup's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Smartgroup, it has a TSR of 117% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! Investors in Smartgroup had a tough year, with a total loss of 6.1% (including dividends), against a market gain of about 10%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 17% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Smartgroup you should be aware of. Smartgroup is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
Independent Non-Executive Chairman of Smartgroup Picks Up 21% More Stock
Investors who take an interest in Smartgroup Corporation Ltd (ASX:SIQ) should definitely note that the Independent Non-Executive Chairman, John Prendiville, recently paid AU$6.95 per share to buy AU$174k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 21%. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Notably, that recent purchase by Independent Non-Executive Chairman John Prendiville was not the only time they bought Smartgroup shares this year. Earlier in the year, they paid AU$8.34 per share in a AU$584k purchase. That means that an insider was happy to buy shares at above the current price of AU$7.09. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Smartgroup insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Check out our latest analysis for Smartgroup Smartgroup is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Smartgroup insiders own about AU$38m worth of shares. That equates to 4.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Smartgroup we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Smartgroup has 1 warning sign we think you should be aware of. Of course Smartgroup may not be the best stock to buy. So you may wish to see this free collection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
01-03-2025
- Business
- Yahoo
It Might Not Be A Great Idea To Buy Smartgroup Corporation Ltd (ASX:SIQ) For Its Next Dividend
It looks like Smartgroup Corporation Ltd (ASX:SIQ) is about to go ex-dividend in the next 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Thus, you can purchase Smartgroup's shares before the 6th of March in order to receive the dividend, which the company will pay on the 21st of March. The company's upcoming dividend is AU$0.31 a share, following on from the last 12 months, when the company distributed a total of AU$0.51 per share to shareholders. Looking at the last 12 months of distributions, Smartgroup has a trailing yield of approximately 6.1% on its current stock price of AU$8.39. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Smartgroup can afford its dividend, and if the dividend could grow. Check out our latest analysis for Smartgroup Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Smartgroup paid out more than half (64%) of its earnings last year, which is a regular payout ratio for most companies. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 90% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Cash flows are usually much more volatile than earnings, so this could be a temporary effect - but we'd generally want to look more closely here. While Smartgroup's dividends were covered by the company's reported profits, cash is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Cash is king, as they say, and were Smartgroup to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at Smartgroup, with earnings per share up 4.1% on average over the last five years. Earnings have been growing somewhat, but we're concerned dividend payments consumed most of the company's cash flow over the past year. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, Smartgroup has increased its dividend at approximately 24% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Has Smartgroup got what it takes to maintain its dividend payments? Smartgroup is paying out a reasonable percentage of its income and an uncomfortably high 90% of its cash flow as dividends. At least earnings per share have been growing steadily. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of Smartgroup. With that in mind though, if the poor dividend characteristics of Smartgroup don't faze you, it's worth being mindful of the risks involved with this business. For example - Smartgroup has 1 warning sign we think you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
