Centuria Capital Group (ASX:CNI) surges 7.8%; individual investors who own 54% shares profited along with institutions

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Key Insights

A look at the shareholders of Centuria Capital Group (ASX:CNI) can tell us which group is most powerful. With 54% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that benefitted the most from last week’s AU$108m market cap gain, institutions too had a 27% share in those profits.

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

Check out our latest analysis for Centuria Capital Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Centuria Capital 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.

Centuria Capital 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Centuria Capital Group's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Hedge funds don't have many shares in Centuria Capital Group. The Vanguard Group, Inc. is currently the largest shareholder, with 9.2% of shares outstanding. With 4.9% and 4.8% of the shares outstanding respectively, Yarra Funds Management Limited and BlackRock, Inc. are the second and third largest shareholders. In addition, we found that John McBain, the CEO has 1.0% of the shares allocated to their name.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.