Advertisement
Australia markets open in 3 hours 40 minutes
  • ALL ORDS

    7,999.20
    -83.90 (-1.04%)
     
  • AUD/USD

    0.6630
    +0.0020 (+0.31%)
     
  • ASX 200

    7,727.60
    -84.20 (-1.08%)
     
  • OIL

    77.80
    +0.08 (+0.10%)
     
  • GOLD

    2,335.20
    +0.70 (+0.03%)
     
  • Bitcoin AUD

    103,771.40
    -568.62 (-0.54%)
     
  • CMC Crypto 200

    1,492.22
    +24.12 (+1.64%)
     

IWG plc's (LON:IWG) top owners are individual investors with 29% stake, while 29% is held by insiders

Key Insights

  • Significant control over IWG by individual investors implies that the general public has more power to influence management and governance-related decisions

  • The top 3 shareholders own 51% of the company

  • Insider ownership in IWG is 29%

If you want to know who really controls IWG plc (LON:IWG), then you'll have to look at the makeup of its share registry. With 29% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual insiders on the other hand have a 29% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

ADVERTISEMENT

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

Check out our latest analysis for IWG

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About IWG?

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.

IWG already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of IWG, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

It looks like hedge funds own 22% of IWG shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's CEO Mark Dixon is the largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 16% and 5.6% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of IWG

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of IWG plc. It is very interesting to see that insiders have a meaningful UK£431m stake in this UK£1.5b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in IWG. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand IWG better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here