Key Insights

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

• The top 9 shareholders own 51% of the company

• Institutions own 34% of PEXA Group

To get a sense of who is truly in control of PEXA Group Limited (ASX:PXA), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 34% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

In the chart below, we zoom in on the different ownership groups of PEXA Group.

See our latest analysis for PEXA Group

What Does The Institutional Ownership Tell Us About PEXA Group?

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.

PEXA Group 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at PEXA Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in PEXA Group. Our data shows that Commonwealth Bank of Australia is the largest shareholder with 24% of shares outstanding. Challenger Limited is the second largest shareholder owning 6.5% of common stock, and Aware Super Pty Ltd holds about 5.4% of the company stock. Furthermore, CEO Glenn King is the owner of 0.6% of the company's shares.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of PEXA Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.