Australia markets closed
  • ALL ORDS

    7,358.70
    +1.00 (+0.01%)
     
  • ASX 200

    7,114.50
    +1.70 (+0.02%)
     
  • AUD/USD

    0.6912
    -0.0003 (-0.05%)
     
  • OIL

    89.22
    -1.28 (-1.41%)
     
  • GOLD

    1,767.00
    -4.20 (-0.24%)
     
  • BTC-AUD

    31,537.89
    -2,614.83 (-7.66%)
     
  • CMC Crypto 200

    517.47
    -40.27 (-7.22%)
     
  • AUD/EUR

    0.6851
    +0.0004 (+0.06%)
     
  • AUD/NZD

    1.1100
    +0.0056 (+0.51%)
     
  • NZX 50

    11,684.81
    -129.53 (-1.10%)
     
  • NASDAQ

    13,505.99
    +35.13 (+0.26%)
     
  • FTSE

    7,524.49
    -17.36 (-0.23%)
     
  • Dow Jones

    33,999.04
    +18.72 (+0.06%)
     
  • DAX

    13,578.90
    -118.51 (-0.87%)
     
  • Hang Seng

    19,773.03
    +9.12 (+0.05%)
     
  • NIKKEI 225

    28,930.33
    -11.81 (-0.04%)
     

What Type Of Shareholders Make Up Fluence Corporation Limited's (ASX:FLC) Share Registry?

  • Oops!
    Something went wrong.
    Please try again later.
·5-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in Fluence Corporation Limited (ASX:FLC) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Fluence is not a large company by global standards. It has a market capitalization of AU$169m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Fluence.

See our latest analysis for Fluence

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Fluence?

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.

We can see that Fluence does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Fluence, (below). Of course, keep in mind that there are other factors to consider, too.

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

We note that hedge funds don't have a meaningful investment in Fluence. The company's largest shareholder is RSL Investments Corporation., with ownership of 26%. With 6.0% and 4.6% of the shares outstanding respectively, Richard Irving and Spark Investment Partners, LLC are the second and third largest shareholders.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Fluence

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in Fluence Corporation Limited. As individuals, the insiders collectively own AU$16m worth of the AU$169m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 45% stake in Fluence. 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.

Private Equity Ownership

With an ownership of 26%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

Our data indicates that Private Companies hold 6.9%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Fluence that you should be aware of before investing here.

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.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting