If you want to know who really controls Sanford Limited (NZSE: SAN), you will need to look at the makeup of its share ledger. Generally speaking, as a business grows, institutions will increase their participation. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Sanford is a smaller company with a market cap of NZ $ 426 million, so it can still fly under the radar of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s take a closer look at each type of owner to learn more about Sanford.
Check out our latest analysis for Sanford
What does institutional ownership tell us about Sanford?
Many institutions measure their performance against an index that approximates the local market. They therefore generally pay more attention to companies that are included in the main indices.
We can see that Sanford has institutional investors; and they own a good portion of the shares of the company. This implies that the analysts working for these institutions have looked at the stock and they like it. But like anyone else, they could be wrong. When several institutions have a stock, there is always a risk that they are in a “crowded trade”. When such a trade goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Sanford’s historical income and earnings below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have significant investments in Sanford. The main shareholder of the company is Amalgamated Dairies Limited, with a 12% stake. For context, the second largest shareholder owns around 6.3% of the outstanding shares, followed by a 4.9% stake by the third largest shareholder.
Looking at the register of shareholders, we can see that 50% of the property is controlled by the 13 major shareholders, which means that no shareholder has a controlling interest in the property.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which direction the wind is blowing. There is some analyst coverage of the stock, but it could become more widely known over time.
Sanford Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company runs the company, but the CEO will report to the board of directors, even if he or she is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own certain shares of Sanford Limited. As individuals, the insiders collectively hold NZ $ 37 million from the company NZ $ 426 million. Some would say this shows an alignment of interests between shareholders and the board. But it might be worth checking out if these insiders have sold.
General public property
The general public, with a 48% stake in the company, will not be easily ignored. While this size of ownership may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Private company ownership
Our data indicates that private companies own 20% of the company’s shares. Private companies can be related parties. Sometimes, insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it should be noted as an additional area of research.
Ownership of the public company
It can be seen that state-owned companies own 6.3% of the outstanding Sanford shares. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. For example, we discovered 2 warning signs for Sanford which you should be aware of before investing here.
If you’d rather find out what analysts are forecasting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.
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