key insights
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The significant ownership of Helloworld Travel by retail investors indicates that they collectively have a greater say in management and business strategy.
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Top 9 shareholders own 51% of the company
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Insider ownership in Helloworld Travel is 15%
To understand who actually controls Helloworld Travel Limited (ASX:HLO), it's important to understand the ownership structure of the business. We can see that retail investors hold the majority, holding 48% of the company's shares. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Meanwhile, private companies account for 27% of the company's shareholders.
Let's dig deeper into each type of owner at Helloworld Travel, starting with the table below.
Check out our latest analysis for Helloworld Travel.
What does institutional ownership tell us about Helloworld Travel?
Institutional investors commonly compare their own returns to the returns of a closely followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
We can see that Helloworld Travel has institutional investors. And they own a significant portion of the company's stock. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can 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 Helloworld Travel, (below). Of course, keep in mind that there are other factors to consider as well.
Helloworld Travel is not owned by hedge funds. Sintack Pty Ltd. is currently the company's largest shareholder with 13% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 11% and 9.0% of the shares outstanding, respectively. Furthermore, the company's CEO Andrew Burns directly holds 6.5% of the total outstanding shares.
On further digging, we found that more than half of the company's shares are owned by the top 9 shareholders. This suggests that the interests of large shareholders are balanced to some extent by small shareholders.
Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership of Helloworld Travel
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers may serve on the board themselves.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
Our most recent data indicates that insiders own a significant percentage of Helloworld Travel Limited. Insiders own AU$66m worth of shares in the AU$456m company. This may suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.
Open to the public
The general public, including retail investors, owns 48% of the company's shares, so they can't be easily ignored. While this group doesn't necessarily call the shots, it can certainly have a big influence on how the company is run.
Private company ownership
It appears that private companies own 27% of Helloworld Travel. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
I think it would be very interesting to find out who owns the company. But to really gain insight, you need to consider other information as well.Case in point: we discovered 2 warning signs for Helloworld Travel you should know.
If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
