Key Insights
If you want to know who really controls Flight Centre Travel Group Limited (ASX:FLT), then you'll have to look at the makeup of the company's shareholder registry. The group with the largest shareholding in the company (about 43% to be exact) are institutional investors; in other words, the group that will stand to gain the most (or lose the most) from investing in the company.
And institutional investors suffered the biggest losses after the company's shares fell 4.2% last week. The recent loss, which brings shareholder losses to 11% over the year, may not sit well with this group of investors. Institutional investors or 'liquidity providers' control large amounts of money, and therefore these types of investors usually have a lot of influence over share price movements. Therefore, a continued fall in Flight Centre Travel Group's share price may force institutional investors to sell shares, which may not be ideal for retail investors.
Let's take a closer look at each type of owner for Flight Centre Travel Group in the table below.
View our latest analysis for Flight Centre Travel Group
What does institutional ownership tell us about Flight Centre Travel Group?
Many institutions measure their performance against an index that approximates the local market, so they usually pay particular attention to companies that are included in major indexes.
As you can see, institutional investors have a fair amount of stake in Flight Centre Travel Group. This means that the analysts working for these institutions have looked at the stock and think it is favorable. But just like everyone else, the analysts can also be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop sharply. It's therefore worth checking Flight Centre Travel Group's earnings history below. Of course, it's the future that really matters.
Flight Centre Travel Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is CEO, Graham Turner, with 7.6% of shares outstanding. Bennelong Funds Management Group Pty Ltd and State Street Global Advisors, Inc., with 6.9% and 6.1% of shares outstanding respectively, are the second and third largest shareholders.
A look at the shareholder registry shows that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder holds a majority of the ownership.
Researching institutional ownership is a good way to predict and filter a stock's expected performance. The same can be achieved by studying analyst opinions. There are a significant number of analysts covering the stock, so you can look up forecast growth fairly easily.
Flight Centre Travel Group Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers directors to be insiders. Management are ultimately responsible to the board of directors, however it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing, but in some cases it can make it difficult for other shareholders to hold the board to account for decisions.
It appears that insiders own a significant proportion of Flight Centre Travel Group Limited shares. They own AU$553m worth of shares in a AU$4.2b company. This is quite meaningful, and this level of investment is good to see. You can see if insiders have been buying recently here.
General public property
The general public (including retail investors) own 37% of the company's shares, which is not something that can be easily ignored. While this size of ownership is significant, it may not be enough to change the company's policy if the decision is not in line with other large shareholders.
Private Ownership
It appears that private companies own 4.9% of Flight Centre Travel Group shares. It's hard to draw any conclusions from this fact alone, so it's worth looking into who owns these private companies. It's also possible that insiders or other parties have an interest in public companies via separate private companies.
Next steps:
It's always worth thinking about the different groups who own shares in a company, but to understand Flight Centre Travel Group better, there are many other factors to consider.
I like to dive deeper It gives you an idea of how a company has performed in the past. Interactive Graphs We provide free historical earnings, revenue and cash flow.
Finally The future is the most important thingYou can access this free We report analyst forecasts for the company.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
