Individual investors among Myer Holdings Limited's (ASX:MYR) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Simply Wall St · 10/15 05:59

Key Insights

  • Myer Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 9 investors have a majority stake in the company with 51% ownership
  • Institutions own 20% of Myer Holdings

If you want to know who really controls Myer Holdings Limited (ASX:MYR), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit AU$766m market cap following a 11% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Myer Holdings.

See our latest analysis for Myer Holdings

ownership-breakdown
ASX:MYR Ownership Breakdown October 15th 2024

What Does The Institutional Ownership Tell Us About Myer Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Myer Holdings. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Myer Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
ASX:MYR Earnings and Revenue Growth October 15th 2024

We note that hedge funds don't have a meaningful investment in Myer Holdings. The company's largest shareholder is Premier Investments Limited, with ownership of 31%. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 4.0% by the third-largest shareholder.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Myer Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Myer Holdings Limited. In their own names, insiders own AU$20m worth of stock in the AU$766m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Myer Holdings. 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.

Private Company Ownership

Our data indicates that Private Companies hold 3.8%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 31% of the Myer Holdings shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Myer Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Myer Holdings you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.