Market cap

Institutions benefited after the market capitalization of Boss Energy Limited (ASX:BOE) rose by A$102 million last week, but it was individual investors who benefited the most

Every investor in Boss Energy Limited (ASX:BOE) should know the most powerful shareholder groups. With a 56% stake, individual investors hold the most shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Individual investors gained the most after market capitalization hit A$790 million last week, while institutions holding 37% also benefited.

In the table below, we zoom in on the different ownership groups of Boss Energy.

See our latest analysis for Boss Energy

ASX: BOE Ownership Breakdown July 28, 2022

What does institutional ownership tell us about Boss Energy?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Boss Energy already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Boss Energy’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX: BOE earnings and revenue growth July 28, 2022

Boss Energy is not owned by hedge funds. Paradice Investment Management Pty Ltd. is currently the largest shareholder of the company with 6.5% of the outstanding shares. For context, the second largest shareholder owns approximately 5.7% of the outstanding shares, followed by 4.0% ownership by the third largest shareholder. Additionally, we found that Duncan Craib, the CEO, owns 1.2% of the shares awarded in his name.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter a stock’s expected performance. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Boss Energy Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders hold shares of Boss Energy Limited. As individuals, insiders collectively own A$48 million of the A$790 million company. It’s good to see insider investing, but it might be worth checking to see if those insiders have been buying.

General public property

The general public, who are usually individual investors, have a substantial 56% stake in Boss Energy, suggesting it’s a fairly popular stock. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – Boss Energy has 3 warning signs (and 2 that are potentially serious) that we think you should know about.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.