17-03-2025
Individual investors account for 43% of Eagers Automotive Limited's (ASX:APE) ownership, while private companies account for 36%
Eagers Automotive's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
A total of 12 investors have a majority stake in the company with 51% ownership
Insiders have sold recently
To get a sense of who is truly in control of Eagers Automotive Limited (ASX:APE), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, private companies make up 36% of the company's shareholders.
In the chart below, we zoom in on the different ownership groups of Eagers Automotive.
Check out our latest analysis for Eagers Automotive
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.
Eagers Automotive already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Eagers Automotive's earnings history below. Of course, the future is what really matters.
Eagers Automotive is not owned by hedge funds. The company's largest shareholder is WFM Motors Pty Ltd, with ownership of 27%. For context, the second largest shareholder holds about 4.7% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder.
A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 Eagers Automotive Limited. The insiders have a meaningful stake worth AU$123m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
The general public, who are usually individual investors, hold a 43% stake in Eagers Automotive. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Our data indicates that Private Companies hold 36%, of the company's shares. 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.
We can see that public companies hold 3.2% of the Eagers Automotive shares on issue. 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.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Eagers Automotive has 4 warning signs (and 1 which is concerning) we think you should know about.
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.
