To understand who truly controls Watkin Jones Plc (LON:WJG), it is important to understand the ownership structure of the business. And the group with the largest piece of the pie is the institution with 68% ownership. In other words, the group faces the greatest upside potential (or downside risk).
As a result, institutional investors suffered their heaviest losses last week, when market capitalization fell by £31m. The recent loss adds to his one-year loss of 61% for shareholders and may be unacceptable for this group of investors. Also known as “smart money,” institutional investors have a great deal of influence over stock price movements. Therefore, if Watkin Jones’ share price continues to fall, institutional investors may feel compelled to sell their shares, which may not be ideal for retail investors.
The chart below expands on the various ownership groups of Watkin Jones.
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What can institutional ownership tell us about Watkin Jones?
Institutional investors typically compare their returns to those of commonly followed indices. As such, they typically look to acquire large companies included in the relevant benchmark index.
As you can see, institutional investors have a sizeable stake in Watkin Jones. This indicates a certain level of credibility among professional investors. But that fact alone cannot be relied upon. Because institutional investors, like everyone else, sometimes make bad investments. If multiple institutions change their views on a stock at the same time, the stock price can fall rapidly. Therefore, it’s worth taking a look at Watkin Jones’ earnings history below. Of course, the future really matters.
Investors should be aware that institutional investors actually own more than half of the company, so they collectively wield a great deal of power. Hedge funds don’t own much of Watkin Jones. The company’s largest shareholder is Octopus Investments Limited, with his 12% ownership. In contrast, the second and his third largest shareholders hold about 7.0% and 5.5% of the shares.
A look at the shareholder register shows that 52% of the ownership is controlled by the top 12 shareholders.
Researching institutional ownership is a good way to measure and filter a stock’s expected performance. The same can be achieved by studying analyst sentiment. Quite a few analysts cover stocks, so it’s very easy to look up forecast growth.
Watkin Jones Insider Ownership
The definition of an insider may vary slightly from country to country, but board members are always important. Management should be responsive to the board, and the board should represent the interests of the shareholders. In particular, top-level managers may be on the board of directors.
Insider ownership is positive if leadership shows that they think like true owners of the company. However, high insider ownership can also give greater power to smaller groups within the company. This can be negative in some situations.
Our latest data shows that insiders own less than 1% of Watkin Jones Plc. However, please be aware that insiders may have an indirect advantage through private companies or other corporate structures. Market capitalization is just £237m and the board only owns shares in his own name worth £749,000. Many small business investors want their boards to invest more. Click here to see if those insiders are buying or selling.
The general public, usually private investors, own 11% of Watkin Jones. Ownership of this magnitude is substantial, but may not be sufficient to change company policy if decisions are out of sync with other major shareholders.
Private equity ownership
With a 12% ownership interest, the private equity firm is positioned to play a role in shaping corporate strategy focused on value creation. Some investors may find this encouraging, as private equity can facilitate strategies that help the market understand the value of a company. Alternatively, their holders may exit their investments after the public offering.
Private Company Ownership
Our data show that the private company owns 6.3% of the company’s shares. It might be worth looking deeper into this. If an insider or other party has an interest in one of these private companies, it must disclose it in its annual report. Private companies may also have a strategic interest in the company.
I think it will be very interesting to see who exactly owns the company. But for true insight, other information must also be considered.For example we discovered Watkin Jones’ four warning signs (Don’t ignore 1!) Things to know before investing here.
Finally the future is the most important. You can access this freedom A report on the company’s analyst forecasts.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …