Rakon Limited's (NZSE:RAK) top owners are retail investors with 40% stake, while 33% is held by private companies
In This Article:
Key Insights
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Significant control over Rakon by retail investors implies that the general public has more power to influence management and governance-related decisions
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A total of 7 investors have a majority stake in the company with 52% ownership
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Insiders own 12% of Rakon
A look at the shareholders of Rakon Limited (NZSE:RAK) can tell us which group is most powerful. 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).
And private companies on the other hand have a 33% ownership in the company.
Let's delve deeper into each type of owner of Rakon, beginning with the chart below.
Check out our latest analysis for Rakon
What Does The Institutional Ownership Tell Us About Rakon?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Institutions have a very small stake in Rakon. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
We note that hedge funds don't have a meaningful investment in Rakon. Ahuareka Trustee Limited is currently the largest shareholder, with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock.
We also observed that the top 7 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Rakon
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.