Interesting article on who owns PRD23 Jun 2020 07:57
Found this article over the weekend quite interesting
If you want to know who really controls Predator Oil & Gas Holdings Plc (LON:PRD), then you’ll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.
With a market capitalization of UK£8.5m, Predator Oil & Gas Holdings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let’s delve deeper into each type of owner, to discover more about Predator Oil & Gas Holdings.
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.
Since institutions own under 5% of Predator Oil & Gas Holdings, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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.
We note that hedge funds don’t have a meaningful investment in Predator Oil & Gas Holdings. Looking at our data, we can see that the largest shareholder is the CEO Paul Griffiths with 20% of shares outstanding. The second and third largest shareholders are Ronald Pilbeam and Spreadex.com Limited, Asset Management Arm, holding 3.1% and 2.7%, respectively. Interestingly, Ronald Pilbeam is also a Senior Key Executive, again, pointing towards strong insider ownership amongst the company’s top shareholders.
On studying our ownership data, we found that 6 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
. Our information suggests that insiders maintain a significant holding in Predator Oil & Gas Holdings Plc. Insiders have a UK£2.1m stake in this UK£8.5m business. I 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.
The general public — mostly retail investors — own 72% of Predator Oil & Gas Holdings. 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.